World Bank Document...and mantenan, the Goveent of Nigeria has requested the Bank's asstamce to improve the road nworks in selected states. The poposed project, which would be the

Doc'sment of

The World Bank

FOR OFFICIAL USE ONLY

C~~~~~~~~~1-/Z k~/1J'b/iReport No. 11327-UNI

STAFF APPRAISAL REPPORT

FEDERAL REPUBLIC OF NIGERIA

SECOND MULTI-STATE ROADS PROJECT

MARCH 16, 1993

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Infrastructure Operations DivisionCountry Department IVAfrica Region

This document has a resicted disiWbuton and may be used by redipients only in the performance oftheir officiil duties. Its contents may not otherwse be disdosed without Wodrd Bank authoizaon.

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(September 30, 1992)

Currency Unit = Naira (N)US$1 = N 19.66N 1.00 = US$0.054

Measures and Equivalents

1 kilometer (Ian) = 0.62 miles1 meter (m) = 3.28 feet25.4 millimeters (mm) = 1 inch

Abbreviations and Acroym

ADT Average Daily TrafficDFRRI Directorate of Food, Roads and Rural InfrastructureEAMU Environmental Assessment and Monitoring UnitECOWAS Economic Community of West African StatesEIA Environmental Impact AssessmentEPC Environmental Protection CommissionFEPA Federal Environmental Protection AgencyFGN Federal Government of NigeriaFHWA U.S. Federal Highway AdministrationFMA Federal Ministry of AviationFMF Federal Ministry of FinanceFMTC Federal Ministry of Transport and CommunicationsFMWH Federal Ministry of Works and HousingHSL Highway Sector LoanICB International Competitive BiddingLCB Local Competitive BiddingLGC Local Government CouncilMSRP-I First Multistate Roads ProjectMSRP-II Second Multistate Roads ProjectNAA Nigerian Airports AuthcrityNPA Nigerian Ports AuthorityNRC Nigerian Railway CorporationNTCC National Transport Coordinating CommissionSMOW State Ministry of WorksSSA Sub-Saharan AfricaTPP Transport Parastatas ProjectITC Technology Transfer Center

FISCAL YEAR

January 1 - December 31

rOR OMCLAL USE ONLY

ki DERA"REEUU; 9 ONME&ERA

COND MULTISTATE ROADS

Tabeof Cog=n

Pag No.

CREDrr AbMPpRgECr SUM9MARY .................................. I

1. E TOD:O ................................. , I

It. MH TRANSPORT SECTOR ............................ 2A. Overview of the Seor ......................... 2B. Transport Planning and Coor tion .................. 3C. Previous Bak Group Involvemen in the Roads Sector and

Lessons .......... .......................... 3

m. IHE ROAD SUB-SEcTOR ................. 4A. TheRoad Network ............................. 4B. Road Safety ....................... 5C. Roads Administration ............ .......... 6D. Stae Roads ...................... 6E. Development of State Roads ...................... 7F. Development Sategy....................... 8G. Rationale for IDA Involvemen ........ .............. 9H. Financiig the Stae Roads Progam ....... ............ 9

IV. THER ..................................... 11A. Project Objectives .............................. 11B. Poject Descripdon . ............................ 11C. Cost Estimates and Fnancing ......... ............... 14D. Road User Charges and Cost Recovery ...... ........... 16E. Implementation ................................ 17F. Procurement................................. 17G. Disbursement................................. 20H. Accoutig and Auding ........... ............... 22I. Reporting ad Monitoring ...... .......... 22J. Enmiromental Aspes ........................... 22K. Projec Supervision ................ 24

7s epost is based on he findins of a Bank wmi which visted Nea In JunJuly 1992, compisingMesusJMm. A. Bhandri (Se. T qanportatior Engin, and Mission Leader), 1M. Makand, (FnancialAalyst). O. Ieiani (tnahstructur Ennr), asitd by cousuls A. Ross (Dopect Speiaist),R. Cbandran (Proment Specat), S. Hctel (ILO Consul) and S. Olugbha-* Hhay nsinea).A. Dalfl oauried out the envronme assesm and R. James provided the computin and eearchassistac Sereil work was done by H. Ko The report has benefitted greatly from work done eatliunder the First Multi-SMta Roads Project by MessrJMmes. C. Queios, . Wamer and S. B aesinan. Thepeer reviwes wae . Rivmn (AF7N) and S. Tombi (ATIT). Mes. 1. Wright and E. Lim are thDivision Chief and Diretor, respcively of the operain.

This document has a restricted distribution and may be used by recipients only in the performanceof their ofcial duties. Its contents may not otherwise be disclosed without World Bank authorization.

V. PROlE USTIFICAlON AND l SR ........................... 24

VI. AGREEMM lAND lCAEalMEA= .......... 2S

AM=

1-1 Nigeria: Road Rehabilitation and Maintenance Initiative

2-1 Past Bank Involvement In the Road Sub-Sector

3-1 Characterlstics of State Road Networks, 19883-2 Selected Information on Project States3-3 State Government Finances3-4 State Roads Manteance Cost Recovery

4-1 Design Standards4-2 List of Vehicles and Equipment to be Procured under the Project4-3 Draft Terms of Refence for State Roads Management Consultancy4-4 Manpower Development and Training and Technology Trasfer Centers4-5 Draft Terms of Reference for Project Oversight4-6 Project Cost Tables4-7 Draft Terms of Reference for Supervsion of Road Work Conacts4-8 Project Monitoring and Evaluation4-9 Project lmplementation Schedule, Details of Procemet Argemets,

and Monitorable Targets and Performance Indicators4-10 Disbursement Schedule & Disbursement Chart4-11 Environmental Assensset Summary4-12 Supervision Plan

5-1 Economic Analysis

6-1 Documents Available in the Project File

Maps IBRD No. 23954 Multi-State Roads Project II (Project States)IBRD No. 23955 Multi-State Roads Project 11 (Oyo State)IBRD No. 23956 Multi-State Roads Project U (Osun State)

EDERAL REPWJB OF BELOA

SECOND M17UIlSII ROADS D;JC

ITAND PRJECSMMAEY

: P"Federal Govrment of Nigeia (FGN)

Fedea Ministry of Works and Housing (MWH),Oyo State Ministry of Works and TanportOsun State Mistry of Work, Lands and Physicl Plaing

A _u~IE: State Mistes of Works (SMOWs), FMWH

A m o SDR 61.4 million (US$85.0 million equivalent)

=: Sandard IDA terms with 35 years maturity

Tmw From FGN to the States for twenty yea, iuding 5 years of gre at XhIBRD variable interest rate. The States would bear the foig exhanris US$2.3 milion would be retained by the Govenrent to financethnical asitance to FMWH.

The project is the second phase of a naonal state roads progrm hat isplanned to evenualy cover most Nigerian states. he fiSt phase coveredthe two states of Kano and Jigawa The proposed project would cover Oyond Osn, and would include:

(a) Road ka: implttion of selected high priory road wodrIn the States' five-year economically jusfied road isvsprogram including rehabilitation and strengtning work, paving ofselected high volume unsured roads and Imnited construction ofnew roads;

Ob) Maincsm by Mm=: initiation of a program of rutie andperiodic maitance of roads by prte c ators, including hedevelopment and training of small scale domesti contractors inusig labor based and ligt equipment sssed cnuctionmethods;

(c) :Vehicles ad Zmea= purchae of vehicles and equpment tostrengthen institutional capacity to plan, dedgn and superin theproject wor; and

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(d) establishmen of W te _arangements wiln the SMOWs and support for planing, deign,construction, maineace and supervision of roads, and for conactmanagement.

Estimated Project Costs:

}biect Costs a nd Fkacig Pla(JSS milion)

Local Foreign

A. Stae Qomgonen

Civil Works 26.9 50.0 76.9Vehicles and Equipment 0.8 3.2 4.0Technical Assistance 1.5 8.6 10.1Training .QJ .16 2

Subtotal (Base Costs): 29.6 63.4 93.0

D. Fdrl= =

Technical Assistance 0.1 0.7 0.8Training 0.0 0.1 0.1Studies JU J_

Subtotal (Base Costs): 0.3 1.7 2.0Total Base Costs 29.9 65.1 95.0

Physical Contingencies 3.0 6.5 9.5Price Congencies AA J 2

Total Project Costs: I1 37.3 80.9 118.2

Fnancing Plan: Lod Foreign I

IDA 4.1 80.9 85.0State Governments

Oyo 16.8 0.0 16.8Osun 16.2 0.0 16.2

Federal Govenment (FMWH) 0 _. 0_.Total: l, J

I/ Of which US$3.7 milion rersents taxes and duties.

Estmated IDA DisbSme(USS milo)

ialX Year J2 199S 12 122 1221 192M

Annual 7.5 16.8 20.4 19.6 12.7 8.0Cumulaoive 7.5 24.3 44.7 64.3 77.0 85.0

lleneh andl Risks: The main benefit from the project would be a more efficient and costeffective state wads network that permits a higher level of economicacdvity. Quantifiable benefits consist of vings in vehicle operatgcost fr nomal traffic and for generated or diverted traffic whereapplicable which would result from improved links between the federainter-urban highways and teriary rural road systems. Additional benefitswould consist of reductions in manac costs, improved road safety,tme savigs and improved links between federal and rurl road systems.The benefits of the Instutional e velopment component, the pilotprogram of road maitenance by contract and development of localcontractors are potently high but un ble.

-here are three major risks associated with the project. The firstconcerns the ability of new and -ntried scates executing agencies toeffectively manage both a large iiwease in maitenance operato andthe switch to contract works. The second risk concerns state levelcapacty to maiain an acceptable acting process. The third riskinvolves the provision of counterpart funds which have historically been amajor problem in project implato in all sectots. The first tworisks will be addressed through the close and condnual inions of thestate agencies, the consultants, FMWH. and IlDA. The third risk will beaddressed by having counterpart funds deducted at the source from theFederation Account.

Rtate of Relbn: Te economic rates of return for the civi works sub-components rangefrom 25% to over 100%. The overall ERR for the combined investmentin the two states is 35%.

RDU&LWICUQ ONIGR

SECON WINA113 10AJ

IL

1.1 Neria is the most populous cty in Africa with a popuation of about 88.5 mlioa1/. which is exected to double during the nex S years. It is located between latitudes4"N and 130N and has an area of approxim- ! 925,000 kmW. The climate varies from semi-arid inthe north, with about 500S m of raf A, to wet and humid In the south with over2,000 mm of rainl per year. There is a well defined wet season In the summer, extendingfor as lite as four months in the north to as long as seven mont in the south. In the north,the terrain is flat with sparse natra vegetation; across the middle belt, there are hills andgraite outcp with savannah type vegetation, while in the south the terrain is generally flatwith tropical forest vegetaton

1.2 Despite its oil wealth, Nigeria is among the 15 poorest counties in the wodd withanual per capita income at around US$290 (1991). Social indicators are slightly below theaverage for Sub-Saharan Africa (SSA). The Structr Adjustment Ptogrm (SAP) launchedIn mid-1986 supported a number of refoms in economic and human rsource developmerThe SAP recognized that removing transport bottlenecks and improving transport efficiencywere crucal to obtaining an adequate supply response in the economy. It also endorsed apolicy of making bett use of asets In the sector through adoption of a -maintanceculture* as a means to achieve the highest overal returm.

1.3 Over the last 15 years there has been a remarkable expansion and improvement of theroads system in Nigeria, bUt inadequate maintenace now threatens the road network, raisingthe possibility of the loss of past invesmnts and serious repercussions for the economic well-beig of the country. Road matence capability is weak ast all levels of Government, andthis problem is compounded by weak orgizational structures for managing the road sysm

1.4 The Bank is supporting a shift in emphasis from new constuction to maint ce andrehabilitation of the fedeal highways under the Highway Sector Loan (HSL, 2963-UNI,US$250 million, Septmbe 15, 1989). In line with this policy shift towards rehabilitaionand mantenan, the Goveent of Nigeria has requested the Bank's asstamce to improvethe road nworks in selected states. The poposed project, which would be the Bank'ssecond operation for state roads, is comistet wih the Baks developnt sregy (pam3.12) and key policy efrms recommended under the Road Rehabilitation and eInitiative (x 1-1). The Project would provide the opportity to pursue at the state levelthe types of I ove being introduced at the fdera level to stenghen the managementof road administrations. The needs of the rural roads which are adminited by LocalGoverrnent Councils (LGCs) are being addressed through the Bank-assisted AgricuturalDevelopmet Projects. More recenty, the Directorate of Food, Roads and RuralInfraucture (DFRRI) in the Executive Office of the President has also become involved.

1.5 The proposed project, Multi-State Roads Project II (MSRP II), which Involves theStates of Oyo and Osun, Is a follow-up to the frst Multi-State Roads Project (MSRP I) which

I/ Based on the prelimiiary results of the 1991 census.

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Involved Kano and Jigawa States. Ihe project was prepared with fiancing from a JapaneseGrant of Yen 166 million (about US$1.3 million). Under the grat, FMWH reinedconsultants who completed the road network condition surveys and other data collectionactivities in the field required for developing the 5-year economic progrm for state roadrehabilitation, strengthening, upgrading, construction and maintennce in Oyo and Osunsimilar to the programs developed for Kano, Jigawa and Lagos under the Fiast MSRP.

11. THE TRASQPRT SECTOR

A. Overvew of the Seco

2.1 During the oil boom of the seventies, Nigeria expienced a strong growth intransport demand, with road, port, and air traffic increasing at 15-20% per year. Iherailways did not share this prosperity to the same ete., although a doubling of freight duringa three-year period at the end of the decade (1979-1982) suggests that there was (and stil is)considerable latent demand for reliable rail service.

2.2 The Federal Government responded to these strong demand pressures with aconsiderable investment program in roads, ports, and civil aviation. Between 1975 and theearly 1980's, Nigeria spent some N7 bilion on roads, mostly in the Federal system. Some10,000 kms of roads were constructed, 3,000 kms rehabilitated, and 4,000 kms strengthened.Port capacity was more than doubled, and 14 major airports (eight capable of accepting 747sor 727s) were constructed or improved.

2.3 Although there are still significant deficiencies in infrastucture, the downturn in theeconomy during the eighties has reduced both the need and *he means to gready expandcapacity. The emphasis now needs to be on maitining and rehabilitating existnginfrastructure, increasing the efficiency with which it is used, and recovering more of thecosts from transport users.

2.4 The Federal Government owns and operates parastatals in all transport modes exceptroads. These range from large enterprises such as the Nigerian Railway Corporation (NRC),the Nigerian Airports Authority (NAA), and the Nigerian Ports Authority (NPA) with federalgovernment investments in excess of N 1.2 billion, N1.3 billion and NO.8 billion respectively(as of end 1988), to smaller entrises like the Central Water Transportation Authority.With the exception of NAA which no longer receives opeting subsidies, all transportenterprises depend on federal goverment subventions for most of their operating expensesand for their entire capital investments. Inadequate levels of capital and recurrent expenditureover several decades have left these enterprises with substantial deferred maintenanrequirements and technologically obsolescent capital stock. The federal government hasclearly indicated its intentioDto adopt policy reforms in parastatals to reduce operating lossesand to begin to opert them on a commercial basis, and, in some cases, to fully privatize orliquidate them. Efficiency measures to be adopted by NRC (i.e. concentrating on moreprofitable long haul bulk traffic) wil place growing demands on the road system to servesmaller centers with service that the raiways are unable or reluctant to offer. The result isthat demand for road services will continue to grow in Nigeria as the economy expands.

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B. au&nsr Plann ing-and Coordnt

2.5 The FeJeral Ministry of Trnmsport and Communicadors (PMrC) Is responsible for allfederal transport matters except the federal highway system which is under the FederalHighways Department (PHD) in the Federal Minstry of Works and H( asing (FMWH). Theresponsibilities of FMTC include the formulation of transport policy, supervision of thefederal transport parastatals, and the provision of infrstucture and services not provided byeither FMWH or the parastatals themselves. Through its National Transport CoordinationCommission (NTCC), FMTC is responsible for planning and coordinating investments andoperations in all transport modes. So far, NTCC, whose membership includes the FMW`H,FMTC, and Federal Ministry of Finance ), has had little influence on the roadsubsector. FMTC has not been very fective on some maters within its jurisdiction, such asrestruturing of parastatals and economic assessment of its own investment programs. This ispardy because of a lack of government interest in these issues in the past, and pardy beasof inadequate professional staff to develop annual and five-year plans based on engineeringand economic criteria. With greater constraints on government spending, there is now moreinterest at FMTC and PMF in making only tfi mnost economic investments. This objective isbeing supported under an ongoing Transport Parastatals Project (rPP) (nara. 2.6).

C. Previous Bank Group Involvement in the Roa& Sector and eIsspn a Ied

2,6 The Bank's and IDA's past involvement in the transport sector in Nigeria has totalledUSi584.9 million and has been predominantly in highways (77%). The MSRP I withproposed IDA credit of US$68 million equivalent, was negotiated in April, 1992, andapproved by the Board in July 1992. Detafls of past lending to the highway sector aredescnrbed in Annmex_2l. Assistance to railways was provided in 1958 (Loan 193-UNI, US$28mnillion) and in 1970 as part of a Transport Rehabilitation Project (Loan 694-UNI, US$25million). There were two port projects (Loan 326-UNI, US$13.5 million, 1963 and Loan922-UNI, US$55 million, 1978). The ongoing TPP approved in June 1986 (Loan 2734-UN!,US$20.9 million) supports the Government's effort to improve the policy envilutnment and theperformance of parastatals, especially NRC and NPA. The MSRP-I is expected to becomeeffective in August 1993.

2.7 Two types of problems predominated in past lending operations in the transportsector, and measures have been taken in the design of the proposed MSRP to avoid theirrecurrence. The first problem was the lack of success of institutional developmentcomponents compared to the relative success of physical investment. lhe MSRP would buildup the State Ministries of Works and Transport (SMOWs) by first of all, reducing the amountof force account operations and strengthening management's capacity to plan, design andsupervise the works to be carried out by contract (Paras 4.4-4.5). By focussing on priorityareas, this approach would maximize the use of the limited manpower available in theSMOWs at the tecbnical and managerial levels. Most road maintenance works would betransferred to private contractors thereby reducing bureaucratic constraints and increasingefficiency. The project would also extend initiatives under the HSL to establish at the statelevel a network of technology transfer centers to meet the technological needs of the SMOWsand the constuction industry (para 4.7). Past road projects suffered substntial delays inagreeing on bidding documents and other procurement related matters due partly to a lack offmility with Bank requirements stemming from the lack of staff continuity, poor trainingand communication. During preparation of the proposed project, special effort has been taken

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to familiarize staff at the FMWH and the SMOWs with Bank e for andadbidding dowments, which the FMWI has now adapted for its own use.

2.8 The Highway Sector Loan (US$250 millicn) was approved by the Soad In Marh1988, and became effective In March 1990. mpl_ieme on of dt ciil worls componenhas been very slow due in part to bureaucratic delays In decision making in the FederalMinistry of Works and Housing and in part due to the lack of advmae prepation of desigsand tender documents. After consultations with the Nigerin Governent, $50 milion loanwas subsequently canceled as of Jan 1, 1993. Nevertheless, ther has bee a siicantprogress In recent months in completing the engineeig designs, prparing tender documentsand inviting bids for the first year road projects. The allocation of budgetary resoures forcapital and recurrent expenditure has Improved in 1992. All audit repors for the project arup-to-date and satisfactory ,Anex 2-_Ž. At the sate level, experience in other projects hashown decision-making to be fister, and Impl an of the ciH works omponents underthe proposed project is expected to be enhanced due to the advnced lvel of preparation ofdesigns and tender documents for the first batch of roads. Tese docme are pected tobe ready for inviting bids on at least two road pmjects in each state by June i993. Theimplementtion readiness of the project is fruther expected to be enhanced by the adopdon ofmodel procurement documents already reviewed and approed by Bank under the HighwaySector Project.

M. TiE ROAD StAFi

A. The Road Network

3.1 The total road network In Nigeria is about 167,800 km, including he federa systemwhich amounts to 28,600 km (see Table 1 below). The stato roads system iS approximatey30,500 km (34% bituminous surfaced), while the LGC road system comprises about 108,700km (about 1.0% bituminous surfced). The federal nevork accounts for about 17% of thetotal network and 67% of biuminous surfaced roads, while the state roads nerk comprs18% of the total network and 30% of bituminous surfaced roads. Th density of the totaroad network at 1.89 km/1000 pop,ltl'on is above the average of 1.17 km/1000 populationfor SSA. The paved road network represents a density of about 0.38 km/1000 population,which is also above the average for SSA (0.29 km/1000 population).

Table 1. : 6 NetworkIAmOs in kml)

l I of Roadsed lad Eamon

Federal Highways 23,000 5,600 28,600 17Stat Highways 10,430 20,070 30,500 18Rural Roads 870 107,830 108,700 65

Total Nigeria 34,300 133,500 167,800 100

Total SSA 111,037 213,092 324,129

3.2 Since 1973, some 10,000 km of federal roads have been constucted, 3,000 kmrhabilitted, and 4,000 km strenoened. Despite this substantial program, the fderalnetwork iS still underdeveloped, with 20% unpaved and in poor condition. Some secio areonly open traffic in the dry season, while a few exist only as lines on the map. Manyroads were constucted witi relatively weak pavements with the intention of st teniAgthem with asphalt-concretL overlays when needed. However, this logical stage-con napproach proved difficult to put into effect in reent years, mainly owing to the lack ofadequate budgetary resources. As a result, strengthening works have not been carried out ontime. In addition, FHD's practice of designing pavements for the 10-ton lega maximan axleload then in effect 2/, instead of the considerably heaier loads actually experienced,combined with poor supervision, led to instances of substandard consuction. For all theabove reasons, coupled with unexpectedly high traffic growth of about 30% a year in the lae1970s, the network deteriorated rapidly. The latest field survey (1988) showed that of thepaved federal road network, 36% was in very good condition, 29% good, 20% fair, and 15%in poor or very poor condition. Strengthening and rehabuitadng the federal network Is dtusthe principal focus of the FHD Program currendy being supported by the HSL.

B. R

3.3 Road accidents impose a heavy toll in terms of fatalities, injuries and propertydamage. Available road accident statistics for 1980-1988 indicate that Nigeria has anexceptionally high road acct fatalky rate (about 33 fatalities per 100 million veham), arate that is about 16 times higher thain the U.K. and U.S.A. The tol umber of roadaccident declined from a peak of 40,900 in 1976 to 31,600 in 1980; data beyond 1982suggest a similar decrease in accidents, injuries and fitalities, possibly due to a reduction ithe vehicle fleet and Improvements in road geometry adn condition. However, fataity rate(deaths per 10,000 vehicles) have tended to rise which suggests a worsening of road safety.In terms of system performance, road safety deserves priority attention, as the annual

2/ The FGN recenty decided to raise the axde load standard in Nigeria from 10 to 11.5ton/aule, to more closely match the Economic Community of West Africa States(ECOWAS) standard of its neighbors.

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economic loss to the country due to road accidents was conservatively estimated at N2.0billion in 1989. Actions proposed under the project, including emphasis on roadrehabilitation, maintenance and road safety Improvements, would contribute to reducingaccident costs on state roads. The consultants assisting in the design of the civil works wfllbe required to give special attention to enhancing road safety.

C. Roads AdnisrtAon

3.4 The FHD is responsible for managing the federal trunk road network; the SMOWsadminister the state road systems while the LOCs have responsibility for local roads. Asmandated by the constitution, the three tiers of government have independent planning,financing and budgeting responsibilities for the roads under their jurisdictions. A persistentproblem has been the shortage of professional and technical staff at all levels of roadsadministration. As a result, planning, project and contract supervision, and the execution ofmaintenance have been weak, resulting in instances of poor quality of construction andinadequate maintenance. Measures are being taken via the HSL (para 1.4) and the proposedMSRP to define an organizaton and action plan to improve the aministaion, rehabilitationand maintenance of state roads. The findings will be implemented under the MSRP.

3.5 Road planning is carried out in principle at three levels. FMF assesses federalhighway needs in relation to other sectors with respect to resource allocation while FHDinitates p-ograms for federal roads based on need, and establishes construction andmaintenance priorities. The SMOWs are responsible for performing similar tasks for stateroads. A third level of planning, although not readily recognizable, exists at the localgovenment level where some decisions concerning LGC roads are made. Coordinationamong the federal, state and local government agencies has not been very effective due in partto the lack of adequate manpower at middle and senior technical and managerial levels. Anadditional problem at the state level is the fiequent turnover of key personnel which seriouslyaffects continuity of management. The MSRP would addresi this problem by providingtechnical assistance and training to help strengthen the coordinating role of FMWH alreadybegun under the First Multi-State Roads Project, and the planning and managerial capabilityof SMOWs. By establishing Technology Transfer Centers (MrCs) at the state level, MSRPwould not only improve internal lir.!.ages, but would allow access to training for SMOW andLGC technical staff. Such centers are provided for in the Project (para 4.8).

D. 2MMBRads

3.6 The state road networks consist of two classes of roads: the remnants of Trunk RoadsB (secondary roads), which provide important links to the federal trunk roads; and tetaryroads transferred from the LGCs and incorporated in the state road systems. The estimated30,500 km of state roads range from enginered two-lane asphalt-suraced roads to dry-seasonearth tracks. About one-third of the state roads is bituminous-ufaced as shown in Table 1.The condition of the state roads varies considerably, much depending on the financialresources alocated to roads and, more importantly, the availability of trained and experiencedstaff within the SMOWs. States with well esablished institutions for implemendng roadprojects have made considerable progress in upgrading and improving their road systemsduring the last decade, while progress in other sta.es has be inadequate.

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3.7 The charactics of the state road networks are summarized In Annex I1. 'ere isa degree of correlation between size of state road systems and the area and population of thestate. Bendel/Delta, for example, has the largest state road network with 30,30 km, whileLagos has the smallest network with 370 km. The extent of paved roads (bituminous-surfaced) ranges from 1,490 km in Bendel/Delta to 210 km in Kwara/Kogi. Ste roadnetworks with a large proportion of bituminous-surfced roads are in: Lagos (96%), Rivers(91%), Kano/Jigawa (72%), Imo/Abia (64%), Kadunaatsina (58%), Ondo (52%), andBendelfDelta (45%). ei. -rns of coverage and quality, the state road systems inAnambra/Enugu, Ber .;. rf .golaflaraba, KwaralKogi, Niger, and Plateau appear to be theleast developed.

3.8 A recent Trunk ?,-ad Study (IRS) carried out by consultants under the Bank finmcedSixth Highway Project, estimated aggregate traffic on the state roads system at 15 millionveh4am per day or about 25% of the trafflc flow on the almost equally sized federal system.The corresponding road user costs on the state system are about US$3.8 million per day orUS$1.4 billion per anmum. The replacement cost of the state road system is estimated atabout US$2.0 billion, excluding major bridges and about 13,000 km of tracks.

3.9 The condidon of the state road system is determined by two main considerations: theextent of road rehabilitation, upgrading, and new construction during the last 10-15 years, andthe adequacy of maintnce. On a relative scale, state road systems in the best condition(less than 20% in poor condition) are found in Kaduna/Kasina, Lagos, Borno/Yobi, andRivers mostly because of the large investments made by these states in bituminous-surfacedroads during the last 10 years. As a result, these states now face a heavier mainteanceburden and reqrire a major reorientation of their road expenditure priorities to preserve theirrecent road investments. The worst road conditions (more than 50% in poor condition) are tobe found in Anambra/Enugu, Bauchi, Kwara/Kogi, OyolOsun, and Ondo due to weak stateinswtitutions for road development and mantenace and to financial constraints. The roadconditions in other states fall somewhere between these limis but, in all cases, the ins onsfor road management at the state level require considerable stening particularly In roadplanning and maintenmce.

E. Develpment of State Roads

3.10 Parts of the state road system are still in the process of definition; there are noaccurate inventories of state roads and the recent TRS suggests that there is a considerableoverlap between state and LGC road systems. Despite their vita importance for intra-scommerce and trade (as the main comectors between the seats of local govemments and asthe backbone of the secondary collector-distributor road systems), the majority of the stateroad eworks is still at an early stage of development. The Five-Year Development Plan(1986-1990) aimed at a complete overhaul of the state road system, including theimprovement to paved standard of 20,000 km out of the total network. No priority was,however, assigned to road projects included in the state road development plans.Furthermore, these plans bore litde relationship to the availability of financial resources or theability of SMOWs to absorb additional resources. With the exception of a few states, theDevelopment Plan was not carried out.

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3.11 According to the Road Sector Strategy Paper (Report No. 7844-UNI, of January 10,1991) a road investmet program for sa toads is economically justified for some 11,000kn. The scope of economica1ly-jusified resealing, rehabilitation, strengthening, andupgrading works on the state road networks is summarized below:

Table 2: State Roads Rehabilitation Pro

Type ofWok LenfihhnM

Resealing 3,500Widening and Suring 1,200Asphat Concrete Overlays (including widening) 1,100Rehabilitation 2,600Upgrading to Paved Standard 2,900

Total 11,300

F. velooment St tn

3.12 Future development of the state road networks will depend on the ability of the statesto mobllze financial resources for road development and maintenance (para 3.17) and theircapacity to plan and utilize these resources in a cost-effective manner. The strategy for futistate road development progravs as agreed between the Government and the Bank shouldInclude:

(a) creation of appropriate organizional and Institudonal arrangements within theSMOWs for plamning and managemant of the state road system;

(b) development of an institutional capacity for state road maintenance, which willeventually reach the LGCs;

(c) mobilization of intenal state resources for the MSRP tbrough road userdcarges, land development fees, and other appropriate revenue gerationmeasures to recover at least the recurent maintenance costs;

(d) development of a phased program of road improvemens in order to stie aproper balance between expansion of road infrastcture and preservation of

- assets;

(e) a strong emphasis on manpower development and contract management tostrengthen SMOW capacity to oversee state road programs carried out byprivate contcors; and

(M the Implementon of an extension program for private road contractors tostrengthen thieh ability to carry out road maintenance and rehabilitationopeaions.

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Selected info n for Oyo ad Own state chosen for inclusion in the proposed MSRP I isshown in Annex-3-2

G. Ratonalk or MA EIvolvement

3.13 The project would be part of the ongoing effort to upgrade Nigeria's state highwaysystem, to make more efcive use of existng infrastructure, and to Identify cost recoverymechnim for roads. As works and transporttion normally account for a significantperentage of public expe e at the state and local levels, an IDA-financed state roadsproject could be an effective vehicle for Instittional and fiscal reform. The Bank/IDA hasbeen a catalyst In Nigeria at the federal level In achieving more economic road investmentpro s, stressing rebabilitaton and maitenance over new investment, and emphasizingin ional development and cost recovery. IMA is now in a strong position to extend thesebenefiu to the state level. IDA has also Intensified its dialogue with Government on the needto sift road maiten acdvities from force account operations to greater use of contractorsand to make progms towards cost recovery fom road users. Ihe project provides a goodoportunity to strengthen the SMOWs In contract supervision while encouraging greaterInvolvement of the private road cntng industry. Hence, the project fits well into theoverall Country Aistance Strategy, which was discussed at the Board meeting of May 28,1992. Ihe project also fits well into the country strategy for environmental institutionbuilding (paras 4.33-4.35).

H. Enancing the State R _oas hog

3.14 A ummary of the 1990 actual and 1991 budgeted revenue, receipts and expendituresfor the combined states of Oyo and Oum is presented in Annex 3-3. Receipts andexpenditue for Oyo and Oun were budgeted at N1.7 billion for 1991. The state reliedheavily on statutory revenue from the Federation Account amounting to N1.2 billion (75% oftota receipts). Capital receipts toted 1181 million (10 percent of total receipts) andinally geneated reveues amounted to N258 million (15% of total receipts) togethermakg up the balance (25%) of the 1991 state budget.

3.15 Road wor are financed from general government revenues; there is no ear-markingof user charge revenues for road wors in Nigeria. Generally, construction, rehabilitation,pavement strengtening and periodic maintea are financed from the states' capital budget,and rutine mnteace opet from eir recent budget. The budget for OyoIOsUIshows capital oeenditure on road infrauctu at N58.7 million, or 10.9% of the totalcapital expendiu for 1990 and N71.7 million or 9% of total capital expenditure for 1991.Total expenditureon roads in 1991 was N1107.4 million for Oyo/Osun. The road workplanned for Oyo/O is pe nly rabilitation and upgrading.

3.16 The cost of adequatey providg recurrent (routine) maintenance of state roads rangesfrom about N7,000 per km for the lower volume unpaved roads (ADT < 300 vpd) to aboutN17,900 per km for the higher volume (ADT > 1500 vpd) asphalt concrete roads. Whenthe annualized costs for periodic maintena are also added, total maintenance costs(exccluding reabilitation and consuction) range from N 18,000 to N57,500 per km. On thatbaii, te estimad amnal recu ment costs Ci 1991 prices) for Oyo and Osun areresevdely N10.6 million and 19.7 million and fte total mairnace costs (recurrent andperiodic) are, N30.5 milon and 129.5 milion respectively annually. Annex 34 shows

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details of the recurrent and total maintenance costs in relation to the total transport relatedrevenue generated in Oyo/Osun states. During negotiations it wa ageed wlith the Borrowerthat a specific amount of funds, to be agreed by October 31 each year with IDA, will beallocated annually in the budget of each project state for recurrent main_tece of the stateroads, and that these funds will be released in a timely manner. Currendy, the estimatedannual cost of recurrent maintenance in each state is US$750,000 equivalent.

3.17 Table 3 shows a summary of the recutrent and total maintenance expenditure requiredto keep the state road networks in Oyo/Osun and the entire country in good condition. Totaltransport related revenue collected in 1991 cover 56% of the desirable recurrent maintenanceexpenditure in Oyo, and 50% In Osun, but constitute only 19% of the total (recurrent plusperiodic) maintenance expenditure In Oyo and 16% in Osun. In comparison, the nationwidecost recovery ratios (based on 1990 data) are 40% for recurrent and 16% for totalmaintenance costs. The main source of transport related revenue is vehicle license fees(65%), followed by drivers license fees (15%), while other fees including registration ofvehicles, change of ownership, safety inspection, annua hackney, etc. account for theremaining 20%. ITe individual rates are very low (see Table 3 in An=-LA4I and have notbeen adjusted since August 1986.

Table 3: State Road Maintenance Costs and Revenues in 1991

IState Roads Reurn Re + P iMaintenance Maintenance(N million) (N million)

Qyo/Osun (1991Q QYQ Qam QYQ QauoAnnual Costs 10.6 9.7 30.5 29.5Transport relatedRevenue 5.98 4.82 5.98 4.82Revenue/Costs (%) 56% 50% 19% 16%

All States (I2Annw Costs 213.2 536.8Transport relatedRevenue 84.8 84.8

Revenue/Costs (%) 40% 16%

3.18 Dringnegotiations it was agreed with the Borrower that the participating States wiladjust the transport related charges sufficiently to recover filly at least the recurrent roadmaintenance costs each year. To be compatible with the overall national requiement, andavoid disparities among neighboring states, all the states should eventually increase the usercharges uniformly by a factor of 2.5 (paras 4.15 - 4.16).

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IV. THE=

A. pmlct O3lives

4.1 The main objectives of the project are: (a) to Improve interw-city roads and transportIn the states of Oyo and Osun and reduce ransport costs through improving the condition ofthe state road networks; (b) to improve organiaional a for better planning andmanagement of the state road system, including strengthening of the institional capacity ofSMOWs; (c) to use contractors for road improvement and for a major portion of roadmaintenance works; (d) to enhance resource mobilization and budgetary allocation at the statelevel to ensure sustined mantenance of the road networks; and (e) to build technical capacityat the state level to assess environmental impacts of road projects. Ihe Project would alsocontribute to development of the private sector through training and participation of small andmedium scale local contractors in carrying out an increased share of road maintenance andrehabiliation using labor and light equipment based technologies.

D. t

4.2 The project would support the following main components in the states of Oyo andOsun:

(a) Road works: implementation of selected high priority road works in theStates' five-year economically justified road investment program includingrehabilitation and strengthening works, paving of selected high volumeunsurfaced roads and limited construction of new roads;

p) Maintenance by contract: initation of a program of routie and periodicmaintenance of roads by private contractors, including the development andtraining of small scale domestic cotactors in using labor based and lightequipment assisted construction methods;

(c) Vehicles and equipment: purchase of vehicles and equipment to strengtheninstitutional capacity to design and supervise the project work and enhamceroad safety in the participating states; and

(d) Institudonal developm ent: establishme of approprate instiuonalarrangements within the SMOWs and support for planning, design,construction, mainteance and supervision of roads, and for contracmanagement.

In addition, technical assistance would be provided to FMWEI for coordinating the project inall the states and conducting environmentl and other relevant transport sector studies,including preparation of the next phase of the state roads projecL

4.3 Road Works: The road works under the project comprise a total of 994 km ofrehabilitation, upgrading, construction and resrfcing works, of which 481 km are in Oyoand 513 km are in Osun as summarized in Table 4. In Oyo, road works comprise pavementreconstruction, overlay, resealing or upgrading (from gravel to bimn us surfaced) of 181

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kin; new construction of a 50 km section of the Ieyin-IJalye road; and complete rehabilItatiof 150 km of high volume gravel roads and spot improvement of 100 km of low volumegravel roads. Similarly, in Osun, the project will fiance 255 km of rehabilitation orupgrading works, construction of a fourlane 8 km by-pass to Oshogbo township; andcomplete rehabilitation of 150 ka of high volume gravel roads and spot improvement of 100km of low volume gravel roads. lhe list of priority roads to be included in the project andtheir economic rates of return are shown in Annex 5-1.

Table 4: Road Works"

-''YQau' I -'t'' 'Rehab. or Upgrading 181 255 436

Rehab. of gravel roads 1SO ISO 300

Spot improvement of gravel roads 100 100 200

New Construction so 8 58

Total 481 513 994

4.4 The above works will be carried out in accordance with agreed stanards whichinclude designs for enhanced road and traffic safety with minimal adverse enevronmeimpac. All of the rehailit and upgrading work wil be carried out on existigalignments, except for local ivements to meet the design standards Am 4-1).Rehabilitation and spot improvet of gravel roads will be carried out largely by using laborbased and light equipment supported methods. After an inia taining and trial period ofabout 12-18 months during which time coractors would be prvded in-depth, on-sitetraining and classroom instructions followed by 5 km trial secdons for rehabilitation, thetrained contractors would be awarded contracts through competitive biddig procedures.During negotiations it was agreed t road mainenc works to be perfomed under theProject (ensuring up to 70- of all maintenance works being be carried out by the ffth year ofProject execution) will be carried out by the co n through contractual arrangements.

4.5 MCreanice by Conntly very little routine and pedodicwork is carried out in Oyo and Osun, all of which is done by force accounL Under theproject it is intended to initie programmed maintenace by contract on about 80 km initialy,increasing gradually to at least 700 km per anmum by the end of the project In eachparticipating state. About 15 to 20 local contcors will be selected and trained in usinglabor and light equipment based methods for road maitnce. After the il triningperiod (epected to last about 12-18 months), maintence contracts genely for 10-50 kmroad sections, will be awarded on a competitive basis using simplified contract doments,bills of quantities and technical specifications. In addtion, about 200-250 single-macontractors will be trained to carry out routine maitenanc as lengthmen. After satisfctorytraining, they may be awarded conacts with unit rates based on experIence gained during thetraing period. For more 4etais see Document No. 3 In project file.

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4.6 Vehicles. EquiDment Pas and Su }ples Epment for materials tsti.laboratores, field testing, affc counting, condtidon urveys, and axde load measurements;and vehicles for surveying, field inspecto, desig and supevision of wors and forenhancng road safety enforcement will be provided for the two project staes. Provision wialso be made for acqsition of four ses of light construction equipment in each state forleasing to domestic coactors under the maiten by contract component of the project.(Details are included in An= 4:2 and in Document No. 3 in project file).

4.7 1natinhonal Deaop=mnt: 'he main areas of weakness in the SMOWs with regard tomanagement of state roads are: (a) planning, programming and budgeting for recurrent andcapital expenditure; (b) procremet, spevion, quality contl and contract management;(c) orgnization and moniring of programed by contact; and (d) fnanciacontrol, accouning and information flow. There is also concern in Osun that havig twodirectorates responsible for highways (one each for construction and mainten) might leadto coordinadon delays (para 4.19). Ihe insutional development component alms at buidingthe capacity of the SMOWs and streamlining the organizatonal stucture. Technicalassistance will be provided with counterpt gements to assist the SMOWs in supervisingand managing implementation of the project; SMOW staff will be trained to deal moreefficiently with conact management (including training of domestic contractors in labor andlight equipment based constuction methods); and a computerized system will be establishedfr collectng and updating data on road network inventory and condition. Under the proje",provision will be wnde for collecting and updating data on the state road network and on highvolume local governent roads which may be eligible for take over by the state government.Axle load surveys will also be carried out and if necessary, load control measures stipuated.Duwing 5 i=i it was agd that by June 30, 1995, axle load surveys would beuidertaken by the project stae, with a view to develop and implement apropriate loadconol measures, if required.

4.8 The technical assistace under the project will be provided by internationally recrutedconsultants and will comprise long-term specialists (project manager, highway planner,materials speciist, accuting expert, maageme inaton speciist ad a speilist inlabor-based cotucdon and conaCtor development) and short-torm specilists (transpoteonomist, procurement specialist, and training speciist). As part of their term ofreerezce, the oonsultants wil be required to train counterpart staff on the job, cilitateprogrammed training of sdected SMOW staff in country and abroad as necessary, oversee themanpower development program and the establishment of Technology Transfer Centers (fpat the state level and monitor the performance and developmenal Impacts of the project. TheTMC will be esablished in collaboration with an exisng state level institon or universitytha has interest in the transport ctor. Anme c- gives draft terms of refere for the statelevel project management consultant services and Anne gives a description of themanpower development plan and the proposed TrCs. The extent to which the transfer ofskills is actually efected will be taken into account in the evaluation of consultants'performance. Detais of the manpower development and tining plan wer agreed on d&ftneio m and will be reviewed annually with IDA.

4.9 in Osn, which is a new state, the project will support establishment of a materialslaboratory filly equipped to enable SMOW to pwvide technical services for constrctionquality control and field investigations for planning and desipg work. In Oyo, the projectwould support rehabilitation of old and procurement of new laborory equipment.

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4.10 At the Federal level, the project will provide support to FMWH TechnicalCoordination Unit being established under the first Multistate Roads Project. Mhe Fedealcomponent will consist of continuing support for the technical assistance comprising a projectcoordinator and an assistant highway engineer (48 man-months); training; av4 studies(preparatory studies for the next phase of state roads projects and comple -- y localtransport sector studies). Draft terms of reference for the Federal level tectri'cal assistancefor project oversight are given in Annex !0.

C. Cost Estimates and Finandng

4.11 The estimated total cost of the project amounts to US$118.2 million (including taxesand physical and price contingencies) with a foreign componen of US$80.9 million equivalentor about 68% of total project cost as summaized in Table 5 below. Detailed cost estimaesare provided in Annex 46. Import duties and taxes on the project related inputs are esdmatedat US$3.7 million equivalent. Physical contingencies tailored to each project componentaverage about 10% of base cost. Price contingencies have been derived from the followingannual projected rates of inflation: foreign 2.8% in 1992, 3.9% in 1993 and 1994, and 3.8%in 1995 through 1997; and local 42% in 1992, 25% in 1993, 15% in 1994, and 10% perannum thereafter. Costs have been estimated at mid-1992 prices and at an exchange rate ofUS$1.0 = Naira 18.0. The exchange rate is expected to adjust over the project period toreflect differences between interational and domestic prices.

Table S: Estimated Proiect Cost(US$ million)

£Qm~~2Mnta ~ LgWa A/ Foreign IQialCivil Works 26.9 50.0 76.9

0.8 3.2 4.01.8 10.3 12.1

Vehicles and Equpment 0.4 1.6 2.0Technical AssistanceTraining _

Base Cost 29.9 65.1 95.0Physical Contingencies 3.0 6.5 9.5Price Contingencies 4.4 93 _ 13.7

Total Project Cost 37.3 80.9 118.2

: Amounts rounded.

A/ Includes US$3.7 million in taxes and duties.

4.12 The financing plan fbr the project issummaized in Table 6 below. It is proposed tofimance US$85.0 million (about 74% ot total project costs net of taxes) from IDA fumds. TheFederal Government would finance US$0.2 million equivalent, and the State Govermes

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US$33.0 milion equivalent in local costs spread over the five-year period of implemeionThe stae govemen would be reqiredto provide counterpart hfndlng in equa montyInstalents (amountig to about US$280,000 equivalent or NS.2 million per month for Oyoand US$270,000 equivalent or N5.0 million per month for Osun). In addition, the stategovernment would be responsible for repaying the loan to the Federal government and beauthe associated foreign exchange risk. To help ensure that limited resources go to priorityareas, It was agreed dring negotiations that during the project Implementaton period, thestates will not undertake any investment for roads estimated to cost more than US$4.0 millionequivalent unless such an investment has been reviewed and agreed upon with theAssociation.

Table 6: hoJect Financing(USt million)

_ _ _ _ _ _ _ _ _ _ I l a

PMWH 0.4 2.1 2.5Oyo SMOW 18.8 39.8 58.6Osun SMOW 18.1 39.0 57.1

Total R_ irements 37.3 80.9 118.2

Source of FundsFMWH 0.2 0.0 0.2Oyo SMOW 16.8 0.0 16.8Osun SMtOW 16.2 0.0 16.2IDA 4.1 80.9 85.0

iotal Sources 137.3 80.9 118.2

4.13 Of the proposed credit of US$85.0 million, US$82.7 million would be passed on tothe participating states (Oyo US$41.8 million and Osun US$40.9 million) at standard IBRDvaiable interest rate, and the Federal government would retain US$2.3 million forcoordinaton of the project, training and preparatory studies. At negoations. it was agreedthat onlending of the credit will be at IBRD variable interest rate for 20 years, including fiveyears of grace, and that the states will bear the foreign exchange riskr A subsidiary loanagreement would be required between the FGN and each state. A condition of crediteffctgiveneS is the signing of a subsidiary agreement with at least one state. A condition ofdi _ in any one of the project staes is for that state to have signed a subsidiary loanagreement between it and FGN.

4.14 The stes of Oyo and Osun have agreed to have the required counterpart fundsdeducted at source from the Pederadon Account in monthly installments, and letters to thateffect have been writt to the Federal Mistry of Finance by the respective state Governors.The couterpart contribution of the project states have been estmated at US$16.8 millionequivalent for Oyo and US$16.2 million equivalent for Osn over five years. This translates

-16-

to approximately US$280,000 equant per month for Oyo ad US$270,000 equialet permonth for Osun.

D. Road User CharOes and Cost Reenvery

4.15 Some states, such as Lago8, are aready recoveing the cost of recurret mainscethrough transport related user charges. On average, states would have to ica road usercharges by about 2.5 times to achieve this goal. In the long run, somc part of revenue fromuet tax leved at the fedeal level or asparate sales tax on fuel leved at the statlevel would

be necessay to meet the costs of periodic as well as routine maintenance, bit legal andconstitutional constra would prohibit this In the short term. A recent road use chrgessudy a1 has estimated that to recover at least the recurrent cost of mantan of thefederad and state road networks, a fuel surebarge of 23 Krbofiter on petol and 9 Kobo/literon diesel would be required in aadition to increasing ann license fees for cars and trucks.To recover the recurrent and periodic maimtnac cost, the surcharge would have to be,respectively, 61 and 27 Kobo/liter (or an increase of 87% and 49% respectively) 4I.

4.16 In the short run, however, it should be possible for stA to recover more of the costsof recrret maintenmce by increasing the road user charges already under their jurisdiction.Although present coverage of costs by user fees varies, states have similar vehicle licens andfee levels. Tis approximate parity should be maitned to avoid tax leakage among states.A conditon of effectiveness is the implementation, in at least one state, of appropriatemeasures, sarsfatry to DA, to incree the level of road user charges collected at the statelevel to recover at least the costs of recurrent maintenace. A nditio nt dWusemen inany one of the project is the implementation of appropriate measures, sati y toIDA, for recovering the costs of recurrent ma a at the state level, for that state.

4.17 With premium gasoline priced at 70 Kobo Oess than 4 US cents) per liter, Nieriaspetroleum product prices are amongst the lowest in the world. It is estimated that the presentpricing policy involves a direct subsidy (to cover crude production and reflning costs) ofaround N23 billion per year, and an additional 127 bilion in revenue foregone from notchaging export parity prices. Reduction of the subsidy on petroleum products has been acritical issue in the dialogues between the Govermt of Nigeria and the Bank and the IMBsince the emergence of major fiscal and exenal blances early in the '980s. This is anextremely sensitive isse, and occasional disnrptons to the supply of cheap gasoline havetriggered popular unrest While oeasional price increases have been implemented, they havebeen overtaken by condtued depreciation of the Naira, so that In real terms, the subsidy hasgrown considerably. In its budget speech, the Transitional Council presented a compellingcase for the reduction of the domestic petrol subsidy ut stopped short of announcingimmediate action). I ing petroleum product prices to help reduce fiscal imbance isconsidered as a critical ingredient of a medium-term strategy.

SI LBI International Inc., 'Road User Chges and Axle Load Study%, Nigeria,FMWH, May 1992.

4I Current fuel price is 70 kobolliter for petrol and 55 kobo/lIter r diesd (October1992)

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E. Im_

4.18 Agreement was reached during appraisal that the project woud be implemented by theSMOWs of Oyo and Osun and coordiated by the FMWH assisted by consultants accebleto IDA. The project would be managed by the Direcor of Righways and in each State, eachof whom has been Wointed as state Coordinator of MSRP-U. Eah SMOW would constutea project Implementaon team comprised of the Deputy Director of Construction,Mainenance, Planning, and otheas who would also be counterparts to the state technicalassistance consultants (STAC). Working document No. 3 In project files gives a detieddescription of the organization of the SMOWs in Oyo and Osun. It was agreed further thatthe mainoance by contract compontent of the project would be Implemend directly underthe mateace division to ensu contuty after the project.

4.19 To enhance the capacity of the SMOWs to supervise rcA works under contact andensure quality control and strict adherence to technical specifications, local consultants will beappoined as required. Draft tems of reference for supervision consultut services are givenin AnnexA. During Daft ja it was agreed that consultants to be appointed by theFMWH and the indivdual states for various tasks under the project would be proured ontms and conditions agreeable to the Bank. Appointment of technical assistance consultantsfor project management In the two states is a conidon of e. Project preparationis already in an advanced stage. Local consultants have been appointod and are currently inthe field preparing design details and tender documents for two road projects in each state.Model ICB documents already in use by FMWH and approved by the Bank will be adaptedfor use by SMOWs. Tender documents are expeced to be ready by May 1993 and bidswould be Invied by June 1993.

4.20 During mplemetn, he project will be monitored to ensure that Its developmentobjectives are being achieved. This monitoring will be undertaken by using the DisagregatedEffectiveness Evaluadon (DEE) Technique. Tbis is based on developing objectivesachievement fameworks for each of the main subsectors of acivity and monioringimplementation wit respect to developmental impact. A brief description of the DEETechnique and indicative D1EE frameworks for the project are presented in Anneax 48. Onlyone subsector has been developed in any detail at present in order to illustrate a typicalframework and similar frameworks will need to be developed for each of the other subsectorsIn due course. This is best done at the Project Launch Workshop (PLW) as the local officialsresonsible for implementation will then be able to participate fuSly In developing the detailedframework and agreeing on the targets and indicators to be used In gugiog success duringimplementation. It is proposed to hold the PLW witn a few month of Board approval.The PLW, a structured project start-up activity, will bring together the key staff members ofthe SMOWs and the FMWH to review the project's objectives and procedures and to disussin detail the sequence of implemention activies and agree on performance indicators to bemonitored. The project implementation schedule, details of procuremeat arrangements andmonitorable target and perfrmane indicators are outlined in Annex 2.

F.

4.21 The table below Isunmarle the project elements, heir estdmated costs and prwposedmethods of procurement:

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Table 7: SupMM of Prcurt Aranzgements(US$ million equivalent)

Procurement Method Total

Project Element ICB LCB Other NBF Cost

1. Civil Works1.1 Buildings (Osun State) 0.7 - 0.7

(0.5) - (0.5)1.2 Road Works (Osun State) 35.4 5.5 0.6 4.7 46.2

(26.5) (4.1) (0.5) (31.1)1.3 Road Works (Oyo State) 35.8 7.5 0.6 5.1 49.0

(26.8) (5.6) (0.5) (32.9)2. GQods:

2.1 Vehicles, equipment, tools and 1.9 O.5 2.4supplies a/ (Oyo State) (1.6) (0.4) (2.0)

2.2 Vehicles, equipment, tools and 1.9 0.5 2.4supplies at (Osun State) (1.6) (0.4) (2.0)

3. Consultanciem h/:3.1 Oyo State - 5.9 5.9

(5.6) (5.6)3.2 Osun State - 6.5 6.5

(6.0) (6.0)3.3 FMWH - 2.4 2.4

(2.2) (2.2)4. Training:

4.1 Oyo State - 1.3 1.3(1.3) (1.3)

4.2 Osun State - _ 1.3 1.3(1.3) (1.3)

4.3 FMWH - 0.1 0.1(0.1) (0.1)

Total 75.0 13.7 19.7 9.8 118.2.____________ ___________ _ (56.5) (10.2) (18.3) - (85.0)

Note: Amounts rounded

NMi: Figures in parentheses are the respective amounts financed by the IDA credit.

a/ Including proprietary items, consumable and office equipment.h/ Services should be procured in accordance with World Bank

Guidelines: Use of Consultans by World Bank Borrowers andby the World Bank as Executing Agency (Washington, D.C.1981).

~E: Not Bank Financed (mncludes filly Government financed components).

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4.22 Procurement arrangements wold be similar to those of the First Multi-State RoadsProject being Implemented In Kano and Jigawa states. Most of the IDA-financed roadcontracts would be procured by International Competitive Bidding (ICB). To the extentappropriate, contracts would be advertised on a slice-and-package basis to allow domesticcontractors to participate. After prequalification, potential bidders would be classified to bidfor one or more slices. However, for expediency, post-qualification of contractori would beused for the first year civil works contracts and as justified. The works which are dispersedgeographically In remote locations and difficult to package for ICB would, however, beprocured by Local Competitive Bidding (LCB) using procedures acceptable to IDA (foreigfirms would be eligible for bidding). For bid evaluation in ICB civil works procurement,Nigerian contractors would be allowed a preferential margin of 7 1/2% which will be addedto bids received from foreign contractors for evaluation and comparison of bids. Contcsfor civil works, estimated to cost individually more than US$0.5 million and contracts forgoods individually costing more than US$100,000 will be procured by ICB. Civil workscontracts estimated to cost less than US$0.5 million (up to an aggregate value of US$13.7million) would be procured by LCB procedures which will include: local advertising, publicopening, clearly stated evaluation criteria and award to be made to the lowest evaluatedresponsive bidder. Ihe first package under LCB procedures would be subject to IDA's priorreview.

4.23 ILO has an on-going project with the National Directorate of Employment, incollaboration with UNDP 5I to train domestic conitractors and government officials inselected states to adopt labor-based and light-equipment supported road mainece andrehabilitation methods. In the project states, all maintenance and most of the rehabilitationwork Is undertaken by force account. Since one of the objectives of the project is to increasethe share of road works undertaken by contract, a pilot project has been designed to build thfecapacity of small domestic contractors for road m2'-tenance and rehabilitation by contract asopposed to using force account methods. For this purpose, selective tendering procedureswill be used, in which about 20-30 pre-selected contractors will be provided training. 7hebidding documents wil include a priced bill of quantities and after an initial period oftraining, contractors wiUl be asked to bid on a plus and minus basis in reference to theindicated rates. Contracts will be awarded to the lowest priced bidders, depending on theircapacity to perform, up to an aggregate value not to exceed US$1.2 million.

4.24 The bulk of vehicles and equipment (amounting to US$3.8 million) required by thestates would be procured by ICB. The remaining (amounting to US$1.0 million), arerequired at various stages by each state. In view of this, it Is felt that flexibility inimplementation would be essential. Prudent shopping and use of UN International AgencyProcurement Service Unit, and when applicable, limited international bidding (LIB) would beappropriate depending on the exigencies of the situation (consistent with Article 3.7 of theGuidelines). Consultant selection would follow the Bank's Guidelines for the Use ofConsultants. Mandatory pre-shipment Inspection will not include price inspection for IDA-finmced procurement under ICB.

5E/ Capacity Building and Support to PRot Labor-based and Light Equipment SupportedRural Infrastructure Program.

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4.25 During project supervision, IDA-financed works cona above a threshold ofUS$500,000 would be subject to IDA's prior rview proeue. Goods cnacts arpackages above US$100,000 woud also be subject to prior reWiew, coverig about 80% ofthe total value of IDA-financed good. IDA supervision mssions will periodically reviewprocurement arrangements for smaller contracts. MAr4 gives further details ofprocurement arrangements.

4.26 Procurement informadon would be collected and reowrded as follows:

(a) prompt reporting of contract award infomation by the two SMOWs to theFHD/FMWH which would furnish the Infomation to IDA; and

(b) comprehensive quarerly reports to IDA by ihe FHD/FMWH based oninformation submitted by the SMOWs (astsied by cons_tat), indicatrng:(i) revised cost estimates for individual contrac and the tot project,including best estimates of allowances for physical and price contigencies;and fii) revised schedule of procurement actions, including adverising,bidding, contac award, and compledon time for inividual contcs.

G. Disbursemets

4.27 Disbursements are expected to be completed In six years, assumig someumprovement over the historic disbursement profile for projects in Nigeria, given the relivesimplicity of the proposed project. The estimated disburseme schedule and chart ar givenin Annex 4-1. The table below gives the categories and proposed amounts to be financedout of the IDA credit, and the percentag to be financed in each category.

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Table 8:Dis b

1. civilWorkI

(a) Oyo State 30.0 100% of fog and 30% oflocal expeadbrs

(b) Osun State 28.5 100% of forepgand 30% of_________ ~~~~~local apupedme

2. Equipment and Vehicles100% of foreip and 75% of

(a) oyo State 1.8 local e

(b) Osun State 1.8 100% of freigp and 75% of_________ ~~~~~~local expdwes

3. A

(a) Oyo State 4.9 100%(b) Osun State 5.5 100%(c) FMWH 2.2 100%

4. Izaingng

(a) Oyo State 1.1 100%(b) Osun State 1.1 100%(c) FMWH 0.1 100%

S. Unallocated

(a) Oyo State 4.0(b) Ostn State 4.0 ____

TOTAL 885.0 . .. . .

4.28 To fiuitate project Imple ti, a Specia Accomt in foreg curency would beestablished for the Borrower and for each project state in a mmerc bank on terms andconditions acceptable to IDA. Initial deposits of US$200,000 for rMWH and US$1.5 millionfor each of the two ses would be made, sufficiaet to coDer et d eligible dover three months. AlU payments under USS150,n00 (JS$20,000 in h case of cuWeequivalent mug be met out of the Specia Accounts. Payments abov this threshold may bemade through the Special Acounts or by using the direct payment or Speci Co_mmtmntprocedures. Reple applications will be sbmied monthly, or when US$500,000 hasbeen dibursed from a Specia Account (jS$100,000 in the case of FMW), whichever

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comes first. & c is the opening of a Project Account with aninitial deposit of at least US$280,000 in equivalent Naira, in an acceptable commerciA bank,by each participating state. All disbursements under the project would be made againststandard documentaion except for expenditure under contracts of less than US$50,000equivalent which may be claimed under Statements of Expenditures (SOEs) with relateddocumentation retained for review by IDA supervision missions.

H. Accounfgng L and AudiIg

4.29 The accounting for all Special Account transactions and for all other project-relatedaccount will be maintained in accordance with international accounting standards. Technicalassistance and training of local staff will be provided under the project. Annual financialstatements of IDA-financed components will be prepared and audited in accordance withInernational Auditing Guidelines by suitably qualified independent auditors acceptable toIDA. Audits will also be carried out, at the same time, and for corresponding periods inaccordance with DA guidelines, for SOEs against which disbursements have been made orare due to be made out of the credit proceeds, and specific reference will be made in the auditreports accompanying the financial statements. During negoations, it ws aged that, byJune 30 each year, the states will submit to IDA the auditors' report and audited financastatements for the Specia Account, Project Accounts and SOEs for the preceding calendaryear, audited by an independent accountant acceptable to the Bank. The FMWH projectaccounts will be audited on a similar basis.

L. RBwrlng and Monitorz

4.30 Quarterly progress reports covering all project components will be prepared by eachparticipating SMOW, consolidated by FMWH, and sent to WA within one month after theend of each quarter. These reports will include: (a) progress achieved against agreedmplementation and disbursement schedules, and key performance indicators; and (1) work

programs and cost estimates for the coming quarter and for the total project. 'he mainpurpose of the reports will be to provide managers timely and updated information onimplementation of project components, highlighting issues and problem areas, recommendingactions and commenting on progress in resolving previous recommendations. The FMWHwill also prepare a Project Completion Report in accordance with IDA guidelines. Duringnegotations, agrement was obtained on these utmairements

J. EnvlrommentalAspet

4.31 An environmental assessment has been completed for the proposed MSRP (September1990). It stated that road construction projects often have adverse impacts an localenvironments. These impacts include soil erosion due to improper designs of embankments orside drains; scouring of the landscape due to borrow pits; and destruction of vegetation due toclearing of right of ways. In the case of road rehabilitation and reconstruction works, theenvironmental impacts tend to be more local and limuted, and result more from reconstructionactivities or improper design. The following impacts could be expected: (i) soil erosion fromside drains and improperly reseeded embankments; (d) environmenta and health problemsassociated with the improper restoration of gravel borrow pits; (di) local and temporary airquality problems due to emissions from bitumen processing plants; and (iv) some destruction

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of vegeaion along the roads by the clearing of right-of-ways. Aknex 411 provides moredetails of the findings of the assessment.

4.32 The impacts of road rehabilitation will vary from state to state as each state hasdifferent environmental conditions, particularly with respect to topography and soil structure.The severity of enviromnental impacts depends also on the type of rehabilitation work to beundertaken, such as bituminous resealing, asphalt overlay, or regravelling, and the amount ofclearing associated with these works. la most cases, indirect environmental impacts of roadrehabilitation works under the project will probably not occur, since the road alignments andgradients will generally remain unchanged.

4.33 The following steps are proposed to mitigate any adverse environmental impacts of theproposed project: (1) survey of each project road to determine whether and where roadspecific environmental impact analysis will be necessary; (1i) involvement of the FederalEnvironmental Protection Agency (FEPA) in providing locally adapted environmentalguidelines; (Wii) systematically conducting local public hearing for the population living alongeach project road to gather views on environmental issues and concerns related to plannedproject activities, and to incorporate these concerns in project planning to the extent possible;(iv) identification of appropriate or innovative design procedures for dispersing water runofffor project roads in all states. Under the first MSRP, an Environmental Assessment andMonitoring Unit (EAMU) will be established in the FMWH headed by an envirospecialist. This unit will coordinate the environmental aspects of road construction andmaintenance in the states and at the federal level. So far, the FMWH has designated anenvironmental specialist from its Environmental Division to be in charge of environmentalimpact assessment and monitoring and coordination of similar functions at the state level.During egotiatdons, the steps to be taken to mitigate adverse environmental impacts werediscussed and agreed upon.

4.34 The final responsibility for implemenion of road specific Environmental ImpactAssessment (EIA) lies with each participating state. As neither the FEPA nor the SMOWshave sufficient in-house capabilities at present to conduct ElAs, this function will beperformed initially by consultants working under terns of reference provided by FMWH andagreed with FEPA and IDA. The consultants would be hired by each participating state underthe framework of the project.

4.35 At the direction of FEPA, the Environmental Protection Commission (EPC) in eachstate in Nigeria is in the process of establishing an Environmental Impact Assessment Unit(EIAU) to assess impacts of various projects in different sectors within the state (Oyo hasalready established such a unit). It was agreed during appraisal that the unit would assign oneperson from its staff to work in close collaboration with and train under the consultants toconduct EIA of road subprojects to be implemented under the project in each participaingstate. Suitable tralning related to EIA of roads would be financed under the project.

4.34 Iseyin-rjaiye Road (50 km) in Oyo and the Oshogbo bypass (8 kin) in Oun are newroads to be constucted under the project. These roads are not passing through any sensitivearea which would pose serious envirommental concers, nor will there be any relocation oflocal population necessitated by their construction. An enviromental specialist has beenengaged in making an envionmental Impact assessment of the proposed new roads. Hispreliminary report indicates that no significant enviromental and health impacts are envisagedduring construction. Although no major issues are likely to arise, it has been agreed with the

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SMOWs th fina contucton of the rads would be conditional on satisfiaoy resoludon ofany major iues and Inoporadon of steps needed to mitgt adverse impacts.

K.a"sad

4.35 Three IDA supevion missons per year, each stafed by a highway enginee, afinancallintittional analyst and a specialist (such a. an economt, prorement speciist,envnme nl pciae st, aining specialist, taffic an safety specislist etc.) would berequired on aveage, during the life of the project. Missions would review the physicalcomponents of the project, monitor achieveme of the institutional development objectves,review ilemenion of the cost recovery measures proposed under the prodect, reviewexpenditures and flow of funds and agree on remedial measures. The mission reviews wouldbe don in the context of agreed targets. A proposed supevision plan is given in Annez4

4.36 A mid-term project review involving IDA and relevant goverment agencies would beheld not later than June 1996, the objecdve of which would be to assess: (i) overall progressin project Implmentation with respect to, inter alia, key monioring idicators agreed with theAssociion, including sta of road user charges and cost recovery, use of privatecontractors, and tainin; Q) pefrmce of the FMWH in its ordinaig capacity;(lii) perfomance of the SMOWs as executig agencies; (iv) performance of consultans;(v) evaluation of the key monorg Indicators; (vi) assessment of eniromentl impacts;(vii) the axe loads on stae rods and stipuon of an ation pln to de with over-lodn,if needed, and (viii) the need for redesign and/or restucturing of project components. Inaddition to the mid-term project review, annual reviews would be held before October 31 ofeach imlementati year, to asses progress and eauate performance durig the past yearand revw the work program and budgetary dlocations for the following year with particularattention focwed on the manpower development and traning progams. During this annalproject eview, evidence of minmum budgetary allocations (agreed in advance with Bank)would be prvided by the states. Dudng Ioaons, agr=m=nt w obtained: (i) on hiescope and tiing of the mid-tem ad annual reviews; and (i;) that SMOWs will prepare onemonth ahead of dme, the reports required for a comprehensive mid-term review.

V. PRQ1}3 lUSIFEICATION AND RIM

5.1 The bendefits of road impovements under the project consist of savings in vehicleoperating costs (VOC) of normal affic and any generated or diverted traffc whereapplicable. Additional befits comprise saving in mteance costs resulting from theimproved condion of roads. Specific invmets have been selected based on economicanalyas using tho methodoogy desried in Annex 5 whih employs the Bankes HighwayDesgn and Mainteac Model (IDM IM) for evaluatng altenatve Ivestments on each ofthe road secdons under cons_idon In the state road networks. The cost estima for theeconomic analysis were based on ngineedng studies which were caried out by consultantsduring project prepaadon In accordace with agreed design standards. Costs were consideredboth In fiacl and economic terms (after adjusing for taxes, duties and subsidies, etc).Beneft to geneated traffic, where applicable, were computed on the basis of 50% of savings

-25-

in unit VOC. Taffic projecdon over the economic life of a road improvement are based ona uniform growth rate of 3% per annum.

5.2 Altentves for dermining the extent of works ranged from minimal routinemaintenance on the exising toads to esufacng and complete recowstructuring of the roadpavement. Benefits were evaluated on a wilth and without Investment' basis, derived fromsavinp in VOC and reductions in the cost of road maintenace. PFaluation was based on thenet present value (NPV) of all costs and benefits and the economic rates of retu (ERRs) ofthe proposed works on each road secion under consideration. The minimum desirable cut-offERR was taken as 12% per anm.

5.3 The cost of equipment and vehicles to be purchased under the project amounts toabout 4%, and tecical stance components, including manpower development andtraining, amount to about 15% of total project cost. These components are of a qualitativerather than quantitative ntur and thus no ERR has been calculated for them. They are,however, exetd to enance the efficiency and susinability of road hmprovements.

5.4 Tables 6 and 7 of AJng S1 give a summary of the ERRs of selected roadimprovements to be implemented in each of the partcipating states under the project.Estimates of ERRs on individual road projects selected for implementation range from 15 toover 100%, wIth mnst wods exceeding 40%. Overall weighted average ERR for roadinvestments In Oyo is 53% and In Osun 32%. The ERR for the combined road investment inbo ses (amon g to 81% of tota costs) is 43%. Excluding benefit from the remainingcoponents coitig of technical as_osi , traning, studies and logistical support, butincludig their costs (amountig to 19% of total costs), the composite weighted average ERRfor the whole project is 35%. For road projects to be included in the project it v agreeauging nexiations hat the mininmum acceptable ERR was 12%.

5.5 There are three major riss asocated wih the project. The first concerns the abilityof new and untried state ect agencies to effecdvely manage a large increase inmaintenance opeatio and the switch to contract works. The second risk concerns statecapacity to maintain an acceptable contacting process. Given the many problems encounteredIn implementing contracts in Nigeria over the past decades, extra caution will be required toensure that the proper supervision and compledon of contracts is maintained. The third riskinvolves the proviion of counterp fimds which have historically been a major problem inproject implementation in all sectors. The first two risks will be addressed through close andcontiual interactions of the state agencies, coltants, FMWH, and IDA. The third risk willbe addressed by having counterpa fuds deducted at the source from the FederationAccount

VL &GRM MD

6.1 During negotiatiOs, agement was obtained from the Federal and State Govenmmentson the following:

(a) a pcif amount of find, not less than $750,000 equivalent to be agreed byOctober 31 each year with IDA, will be allocated annually In the budget of

- 26 -

each state for recurrent maintenance of state roads and that these funds will bereleased in a timely manner (para 3.16);

O) the states will adjust the transport related charges sufficiently to recover fullyat least the recurrent road maintenance costs each year (para 3.18);

(c) road maintenance works to be performed under the Project (ensuring up to70% of all maintenance works being camed out by the fifth year of Projectexecution) will be carried out by the contractors through contrtalarrangements. (par 4.4);

(d) by June 30, 1995, axle load surveys would be undertaken by the project stateswith a view to develop and implement appropriate load control measures, ifrequired (para 4.7);

(e) the details of the manpower development and training plan (para 4.8);

(t) the states will not undertake any investment for roads estimated to cost morethan US$4.0 million unless such an investment has been reviewed and agreedupon with the Association (para 4.12);

(g) FON will onlend the proceeds of the IDA credit to the states at the IBRD'sstandard variable interest for 20 years, including five years of grace, and thestates will bear the foreign exchange risk (puar 4.13);

(h) suitable consultants as required wiUl be appointed by FMWH and the states onterms and conditions agreeable to the Bank (para 4.20);

(i) after credit effectiveness, by June 30 each year, the states will submit to theBank the auditor's report and audited financial statements of the SpecialAccounts, Project Accounts, and SOEs for the preceding calendar year,audited by an independent auditor acceptable to the Bank. Ihe FMWHaccounts will be audited on a similar basis (para 4.30);

Oj) key indicators and targets for monitoring project performance and achievementof development objectives (para 4.31);

(k) arrangements to conduct ElAs and steps to mitigate any adverse environmentalimpacts of the proposed project (para 4.34);

O) a mid-term project review will be carried out involving IDA and relevantgovernment agencies not later than June 1996 to evaluate and assess Q) overallprogress made in project implementation with respect to inter alia, keymonitoring indicators agreed with IDA, including status of road user chargesand cost recovery, use of private contractors, and training; (it) performance ofFMWH in its coordinating capacity; (iii) performance of SMOWs as exectingagencies; (7v) evaluation of key monitoring indicators; (v) assessment ofenvironmental Impacts; (vi) axle loads on state roads and stipulation of an

-27 -

action plan to deal with over-loading, If needed; and (vii) need for redesignand/or restucturing of project components (para. 4.39);

(m) the SMOWs wilt rprpare, one month ahead of time, the reports required for acomprehensive "ii-term review (para. 4.39);

(n) in addition to the mid-term project review, annual reviews would be held nolater than October 31 of each implementation year to assess progress andevaluate performance during the past year and review and agree on the workprogram and budgetary allocations for the following year with particularattention focussed on the manpower development and training programs (para4.39); and

(o) the minimum acceptable ERR on any road project to be included in the projectwould be 12% (para. 5.4);

6.2 The Conditions of Credit Effectiveness are:

(a) either Oyo State or Osun State has fulfilled all the conditions referred to insub-paragraphs Q), (ii) and (iii) below:

(,) signing of a subsidiary loan agreement between the FGN and at leastone of the participating states (para 4.13);

(ii) implementation, in at least one state of appropriate measuressatisfactory to IDA to increase the level of road user charges collectedat the state level, to recover at least the costs of recurrent maintenan(para 4.16);

(*ii) appointment of management consultants by at least one participatingstate, on terms and conditions agreeable to the Bank (para 4.20); and

(b) opening by each participating state of a Project Account (n Naira) with aninitial deposit of at least US$280,000 equivalent in Naira in a commercialbank (pars 4.29).

6.3 The Conditions of Disbursement are:

(a) signing of a subsidiary loan agreement between the state and FGN, for thestate which had not signed such an agreement by the time of crediteffectiveness (para 4.13);

(b) implementation of appropriate measures, satisfactory to IDA, to increase thelevel of road user charges collected at the state level to recover at least thecosts of recurrent maintenance, for the state which had not implemented suchmeasures by the time of credit effectiveness (pars 4.16); and

(c) appointment of management consr1tants, for the state which had not appointedthe consultants by the time of credit effectiveness (para 4.20).

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6.4 Becomnadon: Based on the agre_mns eached on the above condtons, tieSecond Multstae Roads ProJect 1 suiable for an IDA credk of SDR 61.4 million (US$85.0mUlion equivalen) to the Pederal Republic of Nigeda.

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Awsn 1-Page 1 of 5

Nigeris Road Rebbiftlon and MaiiUn tiW£

1. The World Bank's 1988 report on 'Road Deterioration in Developing Counries:Causes and Remedies' revealed the magnitude of the loss of road infastucture due toinadeuate mantenance. Due to the extensive constucdon program the condition of Nigerianpaved roads has been bettethan avere i Africa. However, the deteioration process alongthe Nigerlan road nework has already brought more paved roads to the class 'poor' th theaverage in Africa ad the situation with unpaved roads is even worse.

Table 1: EstImated Condition of the Main Road Network in Nigeria and Africa in 1989

Condition of roads i % Good Fair Poor

Nigerian main paved roads 67% 5% 28%

Nigerian main unpaved roads 0% 10% 90%

African paved roads average 45% 31% 24%

African unpaved roads vg. 26% _ 34% 40%

2. Studies have revealed ihat the reasons for poor condition of African roads are mainlyinsttional and managerial, but also financia and thical. Strong local commitment isneeded to reform policies related to road mint ce, to improve the operation andmanagement of road agencies, to develop human resources and to use road related funds tomaitain the existng network As a first step toward addressing these issues and helpinggovernments improve their own capacities to address trsport problems, the Sub-SaharanAfrica Transport Program (SSATP) was initiaed in 1987.

flLI oa Mduame btatMD

3. The MI R has been developed as one of the centrl components of the SSATP, as aneffort to define and resolve any road maitance policy issues by the participating countriesthemselves. Ihe RMI is a joint undertaking of the United Nadons Economic Commission forAfrica and several Development Agencies coordinated by the World Bank. The RMI wasdeigned to facilitate national policy dialogue, to sdect Importat themes for reform, to createpositive enviroment for the reform process and to brtig about sustained reforms in theselected road madntenance policies.

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AnneA 1-Page 2 of 5

4. The RMN is being implemented in a phased approach. During the first phase all ofthe SSA countries participated in one of the six regional seminars held from May 1989 toFebruary 1990 in Harare, Accra, Addis Ababa, Dakar, Libreville and Antananarivo. Duringthese seminars the participating country teams identified the sources of the main problemsassociated with road deter-oration and poor maintenance in their countries, set clear goals,devised a policy strategy to achieve these goals and finally specified the measures to becarried out by government institutions and agencies in their countries.

5. The seminars followed the Policy Action Planning (PAP) method developed by theCarl Duisberg Gesellscbaft, a training institute of Cologne, Germany. The PAP methodbrought the participants to work together as a national team to choose a limited number ofgoals as national priorities. Those goals were transformed into concrete objectives. Theparticipants then defined the measures needed to achieve these objectives.

6. The second phase of the RMI focuses on facilitating the process for policy reforms ina limited number of selected countries. It has been designed to support the development,introduction, adoption and implementation of improved policies, related to one or moreimportant aspects of road planning, maintenance and administration, in a limited number ofvolunteering countries. The RMI Phase II is carried out in those countries that express aninterest in developing road maintenance from the policy perspective, indicate theircommitment to undertake reforms and for which key donors have expressed an interest infinancial support.

RMI in Nigeria

7. The RMI phase II in Nigeria is called Nigeria Road Rehabilitation and MaintenanceInitiative (NRRMI). It is intended to enable Nigerian policy makers and senior managers toassist Nigeria in improving its road maintenance policies and strategies. It will be the linkbetween the various efforts in Nigeria being undertaken by Federal Government, StateGovernments, private organizations, development banks and donor agencies to improve roadmaitnnce.

8. The overall development objective is to secure sustainable improvements in roadsector performance In Nigeria. The immediate NRRMI objectives are:

(a) to ensure that the need for reform is recognized, and to build up motivationand commitment to address the problems;

(b) to facilitate through NRRM, the identification of appropriate policy optionsand promote the adoption of these policies; and

(c) to support and monitor the implementation of the adopted policies and toassess their effectiveness.

be DevWomet of

9. A team of nine officials represented Nigeria at the RMI Phase I Seminar in Accraon June, 1989. The participating officials identified two major areas for further developmentfor policy reforms:

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Annm I-Page 3 of S

(a) inadequate road maintenance funding; and

(b) the need to establish an autonomous Road Agency.

10. To initiate the RMI Phase H the Government of Nigeria in February 1991 expressedIts willingness to take the following actions in order to enter Phase II of the RMI:

(a) select policy issues for review;

(O) establish an Inter-Ministerial Steering Committee for the RMI Nigeria; and

(c) establish a Secretariat and appoint a National Coordinator (NC) for RMI.

The National Road Maint. Policy Seminar (RMPS_. Otta, Qoun State, September, 1991

11. To launch the RMI Phase II in Nigeria, a Seminar on Road Maintenance PolicyReform was organized by the Nigerian Institute of Transport Teihnology (NlTI) on behalf ofthe FMWH and in collaboration with the World Bank at the Gateway International Hotel,Ota, Ogun State from the 9 to 13 September, 1991. The objectives of the Seminar were:

(a) to raise and sustain awareness and commitment for mainining andrehabilitating the Nigerian road network;

(b) to identify issues mitigating against effectve road maintenance; and

(c) To develop policy action planning capacity amongst the participatinginstitutions and government organizations.

12. The Seminar was headed by the Hon. Ministers of Works and Housing, and Transportand Communication, and attracted more than hundred participants from the Federal and Stateorganizations. The RMPS revealed a number of key matters to be reformed when aiming atimprovements in road maintenance. These issues were elaborated into the following ninerecommendations in the Seminar Communique:

(a) increase in recurrent and periodic maintenance funding;

(b) establishment of a Federal Highway Authority;

(c) improved training for highway sector civil servants;

(d) support for competent indigenous contractors;

(e) safeguarding of public highway property;

(t) inclusion of maintenance training in university level curricula;

(g) use of contractors for road maintenace;

32 -

Arm= 1-1Page 4 of S

(b) approre use of labor intensive and ligtly mecbanized metods in road

() henig of pavements and stricter axle load control.

0) need for Improved management procedures, methods and system.

13. Some additonal issues arising from the rwiew and assessment of current FHDoperatons are:

(a) adoption of 'resealing' in maintenance activities;

(b) poor disemination of study reports as well as avaiable data in the PavementEvaluation Unit and the Traing Centers;

(c) need for substatW increase in the 1st and 4th quarter budget allocations forroad maintenance works;

(d) insttionalizing the separation of planning and monitoring functions fromthose of execution; and

(e) clearing the maintenance backlog.

NRRI Ifroect Domn

14. A Project Document has been prepared by a local consultant under the Suance of theNational Coordinator and World Bank AP4IN and AFTIN RMI Unkt, in order to frtherdevelp policy reforms. The following issues have been selected in the Project Document asthe first priority policy reform topics:

(a) sufficient maintece financing through a Road Fund;

(b) increased use of contractors in road maintenance;

(c) establishment of the Pederal Highway Authority.

15. The selected priority issues as well as the remaining issues as staed above, are furtherelaborated In the NRRUMI Project Docment. A Plan of Operation is also included in theProject Document for studies, seminars and policy reforms.

- 33 -

PageS of S

16. The following studies are proposed In the Project Document:

(a) stdy of fiancing road maitenance US$100.000

(b) use of conWactors to perform road maineace USS 60,000

(c) preparton of a 10-year Road Progra US$300,000

(d) Road sector manpower and training needs US$250,000

(e) Use of labor intensive and lightly mechanizedroad maintenance methods uS$00

Total USS810-NQ

The Project Documet recommends these studies to be taken as part of the consequeatHighway Secor and Multise Roads Projects.

TMe Role of States In NBMI

17. As part of the NRRMI there will be three Regional Road Mainenace PolicySeminas during 1992-1993. The focus on these seminars will be on state level improvemetof applied maintnce policies and the cooperation between federal and state authorities. Thefirst regional seminar will focus on the selected three priority reform issues. It will be held inconjction with the launching of the MSRP. The swdies and reports prepared under NRRMIwill be discussed with and delivered to the states. NRRM will support the state level policyreforms and contribute to the state road sector seminars within its capacity. Under theNRRMI the federal and state officials, the Indigenous stakeholders, the donor and aidorganizations will be brought together to reinforce the efforts in mwoving road mantenancein all levels in Nigeria.

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Annex 2-1Page I of 4


SECOND MUITISTATE BOADS PROJECT

Past Bank Involvement in the Road Sub-Sector

1. There have been eight projects in the highway sub-sector, including the roadcomponent of a transportation rehabilitation project. In summary, the project content was asfollows:

(a) Northern Road Project (Credit 73-UNI, March 1965). This credit was madeto the Northern Region of Nigeria, and financed road construction,construction supervision by consultants, and the supply of materials testingequipment and weigh bridges.

(b) Apapa Road Project (Loan 426-UNI, September 1965). This was a section ofurban road which consisted of the Ijora Causeway (1.2 miles) and Apapa Road(2.5 miles) both to 4-lane divided standard.

(c) Western Road Project (Loan 427-UNI, September 1965). This loan was on-lent to the Western Region. It covered trunk road improvements andconsulting services for the supervision of works and detailed engineering, andreorganized maintenance operations. It also included the procurement ofmaintenance equipment and spare parts.

(d) Road Rehabilitation Project (Loan 640-UNI, November 1969). The projectincluded the rehabilitation of about 200 miles of roads in the Lagos-Kanocorridor, and detailed engineering of the Lagos-lbadan expressway.

(e) Transoortation Rehabilitation Proiect (Loan 694-UNI, June 1970). This wasintended to be a quick disbursing loan to rehabilitate priority transportinfrastructure that had been damaged during the 1967-70 civil war. Projectcomponents were only tentatively identified at appraisal, consisting of eightroad sections, and consultants for engineering and construction supervision.

(f) Fifth Highway Project (Loan 883-UNI, June 1974). As appraised, the projectprovided for: (i) rehabilitation of 109 miles of highways and reconstruction ofeight bridges, (ii) consulting services for construction supervision, feasibilitystudies and detailed engineering, plus technical assistance for improvements infederal highway management planning and maintenance, and (iii) acquisitionof highway planning and vehicle weight control equipment.

(g) Six_t Highway Proie (Loan 1883-UNI, August 1980). The projectcomponents provided for: (a) strengthening about 520 km of federal trunkroads, (b) studies of the Calabar-Ikom road, and establishing improvementpriorities on the federal trunk road system, (c) technical assistance for atraining program for technicians, and personnel planning, design, constructionand maintenance in FHD, and a pavement evaluation unit, (d) housing for

- 35 -

Annex 21Page 2 of 4

technical assistance staff, and (e) highway safety equipment and pavementevaluation equipment.

(h) Highway Sector Loan (Loan 2963 UNI, September, 1989) The loan becameeffective as of March 30, 1990. The loan was to support FHD's highwaysector program over the 1989-91 period. It required the following significantchanges in FHD's past practices:

(i) highway expenditures to reflect substantial changes in favor of routinemaintenance, rehabilitation, and strengthening;

(ii) improved planning and programming of proposed improvement worksby carrying out economic analyses;

(iii) more orderly budgeting and planning, and systematic preparation ofdetailed designs;

(iv) civil works lots to consist of road sections approximately 50 km longwhich will enable most contracts to be completed in 12 to 18 months;

(v) better supervision of rehabilitation, strengthening, new construction,and routine maintenance.

2. A ninth project, the Multi-State Roads Project I, has recently been approved by theBoard on July 21, 1992.

3. No Project Completion or Audit Reports were written on the Northen Road Project.The road construction encountered significant technical problems during and immediately afterexecution.

4. The Apapa Road project (PPAR No. 1229, July 1976) was eventually completedsuccessfully, and in spite of cost and time overruns the project was economically justified.Issues discussed in the Project Performance Audit Review (Report No. 1229, July 1976)were:

(a) The quality of the original technical design: the consultant chosen by FHD (onthe basis of price as later revealed) to review the FHD design proved to beincompetent.

(b) Use of consultants for construction supervision: the consultants began work inJuly 1966; the Bank had proposed supervision by consultants, but accepted acompromise that the consultants act in an advisory capacity to FHD whichinsisted it had competent staff. The subsequent Tribunal of Inquiry consideredthat the Bank would have been justified in insisting on full constructionsupervision by the consultants.

(c) The traffic capacity of the initial design was inadequate and was more thandoubled during the redesign.

- 36 -

Am 2-1Page 3 of 4

(d) The Goveament did not comply with some loan covenants. lTe Bank mayhave chosen not to enforce these behs of the civil war in progress at thetime. Irregularities in the adminion of the project led to the appointmentof a Tribunal of Inquiry and the removal of the FHD Director from office.

5. The works included in the Western Road Project (PPAR No. 1639, June 1977), weresuccessfully completed, but there was only limited success in improving maitenanceoperations as the Government lacked adequate masagement personnel, funds, and control overheavy vehicles. The Government was late with payments to consultants and contractors, andthere was delay in appointing the maintenance advisors becuse of disagreement between theGovernment and the Bank over the teams of service for the advisors.

6. The main objective of the Road Rehabilitation Project (PPAR No. 1410, January1977) was the rapid rehabilitation of two road sections. Project processing was prompt andflexible, but loan effectiveness and contract awards were delayed, the first by 4 months morehan expected, and the second by a year. As a result the roads contned to deteriorate andrehabilitation was much more extensive than expected, rausing costs and ultimately less thanhalf the original length was built. The study of the Lagos-Ibadan road led to a majordisagreement between the Government and the Bank about the tining of construction.

7. For the Transport Rehabilitation Project (PPAR NO. 2092, June 1978), despitemodification of the Bank's procedures, the intended rapid disbu nt did not materialize.The delays were caused by the Bank's need for economic analysis during the identication'of sub-projects, and by the Government's slow procurement. The slow procurement underthe Road and Transport Rehabilitation Projects was partly related to the Tribunal of Ilquiryon the Apapa Road Project.

8. The execution of the Fifth Highway Project (PPAR No. 3244, December 1980)covered a period of major disaBgreement on highway matrs between the Government and theBank. As a result no supervision missions visited Nigeria between September 1975 and May1978. Execution of civil works was generally satisfactory except for poor corractorperformance on one lot, which reduced the length of highways completed from 109 to 99miles. All the bridges were completed satisfactorily. The institutional development was lesssuccessfil. Measures for improving federal highway maintenance were well conceived butreallocation of responsibility for mntenance from PHD to SMOWs made the consultants'efforts of marginal relevance. The Government made only limited progress on implementingloan covenants on axle-loading and building up a data base, because these were not priorityobjectives for PHD. Apparently, conditions offered were not sufficient to attract high caliberexperts to Nigeria to build the capacity of PHD, although eventuly a taffic engineer wasseconded from the British Transport and Road Research Laboratory for eighteen months. Hewas assisted by two experts funded by United States Agency for Inetenational Development.

9. The Sixth Highway Project was completed September 30, 1988. The roadstrengthening works have been completed, together with the acquisition of highway safetyequipment and pavement evaluation equipment. Instttional development was limited. Thepavement evaluation unit was established, although its role is only now being defined underthe Highway Sector Loan. Other than the consultants for matance monitoring, the postsforeseen in planning, design and construction were not filled. This was partly due to

.37-

Annex 2-1Page 4 of 4

administrative delays, but also to a Government desire to reduce the amount of expatriateassistance.

Highwav Sector Loan

10. The Highway Sector Project is approximately 15% completed. Overall, the project isabout 2 years behind schedule. As of December 31, 1992 the loan has disbursed aboutUS$43 million against the original SAR fbrecast amount of US$213 million. Now, theproject management and coordination consultants are in place; progress has improved. About27 contracts for design work have been signed. Suppliers for procurement of equipment havebeen selected and the contracts are soon to be awarded (US$2.1 million). Tenders for nineroad projects (US$40 million) have been invited and prequalification of contractors foranother six roads (US$30 million) is in progress.

11. Financial Covenants: The Special Account, Project Accounts, and the Statements ofExpenditure under the project were audited in December 1991 and June 1992. The auditors'reports have been found satisfactory.

12. Eunding: The allocation of budgetary resources for capital and recurrent expenditurehas improved in 1992. As of June 1992 about N500 million have been spent on capitalexpenditure (including supplementary allocation) and the annual allocation is expected to beabout 9% of the total federal capital budget. Similarly, allocation for recurrent expenditurehas increased from N254 million in 1991 to W368 million in 1992. However, due to pastinadequate investments in periodic and routine maintenance, a large fraction of the recurrentexpenditure continues to be made on emergency and special repair projects, leaving litde forprogrammed routine maintenance. The FHD is in the process of implementing pilot schemesfor programmed routine maintenance by contract. Government has allocated N8 million forinitial expenditure.

13. Road User Charles: After the delay of 18 months in getting started, the road usercharges study was successfully completed in May, 1992. Draft recommendations have beenpresented to FMWH. The study shows revenue from federal taxes and duties on importationof vehicles and petroleum products, and from road tolls already exceed the desirable recurrentmaintenance expenditure on federal roads. Nevertheless, the study recommerds imposing afiel surcharge of 23 Kobo/liter on the price of gasoline, and 9 Kobo/liter on diesel to coverthe recurrent maintenance expenditure on state and federal roads. An action plan has been puttogether by FMWH, for consideration by IDA and Government.

14. Implementation Delas: The delays in implementation currently experienced underthe project are a result of the bureaucratic decision making process. Almost every decisionhas to go through the Minister, before which time it must go through the Director of theFederal Highways and the Director General. For the same reason, the ability of theinternationally recruited project management consultants is greatly hampered in terms ofspeeding up implementation. These and other implementation issues have been discussed withthe Government and FMWH during a sector implementation review held in Nigeria in June1992. As a result of that review, US$50 million was canceled from the outstanding loanbalance as of January 1. 1993.

.. EEAL RWVBLQCOF HIORASCCOND MULTISTATE ROADS PROJCT

CIIARACTI!RISTICS OF STATO ROAD HNiTWORKS, 1988Road Projects h.t&ed In 4th S-yr Pla (1981-

Road Lensh ravd Road IS5) or tdab/Constr.Returfacing to:Road Wllb ADT a 300 Wtbh AlDT L$ Pavedl Upaved

Ndwork hravedR Cond;in or State R -o (a) or Moro Tg30 Lond4 Stwd -rd TOw(km) (km) ) % Good s Pt S poor (km) SPavd (km) (kai) (km) (km)Aasbubrl0gu 1636 320 19 21 16 63 733 (41) 0 IOo 0 110wDracm 1480 ()250 11 1 0 .89 182 (100) 68 770 0 7T0

DIam2D 3304 1490 4S 21 SO . 29 1117 (82) 570 2400 0 2Q00_eau 2950 S30 18 23 40 3? 1118 (36 142 940 1350 2290Dotsdsle 1700 (a) 149 9 0 I00 0 149 (100) 0 1700 0 1700

Akwolbe 1964 310 16 24. 30. 46 '.439 (66) 25 S00 350 1150cla leff ba, 1165 240 21 69 0 31 352 (S5) 46 140 390 1030I=dn ha 1217 780 64 29 32 39 920 (35) 0 1290 0 1290

K _duAtsla 1880 109051 78 16 6 1096 (9) 0 730 S30 1260Kanigsawa 1390 1000 72 68 2S 7 825 (89) 266 1620 0 1620KwaItlKu 1189 210 I8 4 4 92 313 (S) 64 1000 0 1000Lqoa 370 ) 3S0 96 7S 17 S 207 (97) 148 320 0 320Niger 700 447 58 42 2X 30 450 (90) 0 300 660 960Oreg 917 (b) 400 44 34 33 32 497 (67) 70 780 SO0 1280Ondto 2160 1120 52 3 24 73 1170 (68) 330 2500 0 2500Oydolw2 1099 (b) 480 44 2S 22 S3 387 (6a) 220 1340. 1520 2860Platma 2242 240 11 IS 4 37 39S (56) 25 540 S60 1100lIvrs 535 4791 0 12 19 241 (9) 255 1090 0 1090SokddKMbbl 2620 SR 21 50 2S 2S 526 (78) 124 1220 SO .1270TOTALS 30548 10434 34 20180 6410 26S90

(a) Coditon daa baed on a 20-95% smple orf state toad wit ADT of 250 r mo. Th overal condica of &We rmadnetkS, lkyto be m*uc woo "ae he dwidke sho aboov. s udo coodio statlsic do OM InCdt lower volume oadswhic ore generally Ins wwors aedkiton.

(bi) lat c bla sban abd Won* adsb.(e) 1 tAsem Rept No. 7344-UNI. -Pedea Republic of N4gelr: Road Sedotr Sate Pspe. Jury 199M. World Dak

S

- 39 -

AnnePage 1 of 2

FERAL REEUNJ OF MIGERA

SECONIE ROADS PROJECT

Selected Information on Protect States

A. OYOSI

1. Oyo state is located in the south west section of the Federal Republic of Nige&id. It isbounded in the east by Osun state, in the west, by the Republic of Benin (formerly Dahomey),in the north by Kwara state and in the south, by Ogun state.

2. Together with Osun state, Oyo state covers an area of about 35,750 square kilometersand it is fairly urbanized. Ibadan, the capital of Oyo state is a very cosmopolitan town. It isreputed to be the largest indigenous city in Africa, south of the Sahara. It is one of thelargest industrial cities in the country. It has both private and public businesses and sevesboth the southern and northern areas of the country.

3. The town of Oyo has an important historical backgound. it is famous for its pastwarrior kings and it is well noted for carvings particularly of calabashes and the fabrication ofnative drums. Iseyin, another sizeable town in Oyo state lies north of Oyo town. It is notedfor the weaving of native cloth fabrics.

4. Oyo state has two universities within its geographical area. University of Ibadan is afederal institution while the Ladoke Akintola University of Tecdnology situated inOgbomolsho is owned by the State.

5. Oyo state has two major climatic seasons, the dry and the wet. The wet seasoncommences around April and lasts till October while the remaining five months are relativelydry. In the southern part of the state, the vegetation is both thick and deciduous. To thenorth, it is predominantly grassland that is suitable for arable crops. The average rainfall is61.3 cm in the south and 50.3 cm in the north.

6. Agricutural production in Oyo state consists of a wide variety of food and cash crops.The food crops include yam, maize, cassva, beans, millet, plantains and banana. Fruits, likeoranges, tangerine are also produced in appreciable quantities. The cash crops are primarilycocoa and palm produce. Ihe area is suitable for catde and in the 1960s, dairy farming bygovernment was extensively practiced at Fashola, a village some kllometers north of Oyotown. Farming and fishing (on a limited scale) form the major agicultural activities of thestate. The Intenational Insdtitte of Tropical Agriculture, the Cocoa Research Institute ofNigeria and the Federal Department of Agricultural Research are all located in Ibadan.

7. Provisional results from the 1991 census put the present population of Oyo state atabout 3.5 million.

- 40 -

AnnexPage 2 of 2

B. OSl

8. Osun state was ceated out of the old Oyo stat in August 1991 and hares the sameimatic c. It s bounde In the ea by Ondo stae, in the west, by Oyo state, in

the north by Kwara sat and In the south by Ogun stte.

9. The population of the State is provisnlly put at about 2.2 million. The agriculUralactivities are simiar to tos In Oyo state but being a young state, It has yet to develop itsindustrial potentias. However, a fairly large brewery operes near Ilesha.

10. Osun state however, has a disinctive tourist attaction in the annual Osun fesivalwhich is held at the Osun dr. During e fsval, presents arebrought to e goddess ofthe river and blessings, prosperity and pro-caton are invobd on all Osun state women

11. Furthermor, the ancie CitY of lle-fe is shated in Osun state. Its believed to bethe origin of all Yorubas both in Nigeria and the diaspora.

C. WZEIE[ATIsrlcs

Total Estimated PopulatIon, 1991Oyo 3.49 millionOsun 2.20 million

Total Area 3750 km

EwdIui Pattern budggtL 1991 (N milion)

Total exepnditure 1,702Total capital expeItue 767Amount allocated to Roads 72Amount allocated to Roads as % of

capital expedit 9%Amount allocated to Roads as % of

total ependitu 4%

Main Source. of Revenue for the States (ctuafl (N mfllion)

122 1 9 M (udget)Story allocatio from the

Federal Govenmnst 792 982 1262Intal Reveue Mobiization 341 381 259

FEDERAL REPUBLIC OF NIGEtIA.

SECOND MULTITrATE ROADS PROJECr

SUMMARY OF GOVERNM9EN RECURRENr REVENUECm Naira mllions)

OYO/OSUN

1986 1 1987 1988 1989 1990 1991TAXES 38.49 43.00 49.14 63.76 74.06 99.26FEES & FINES 37.29 68.82 55.40 50.49 51.20 61.07Vehide Ownership Transfer 0.02 0.06 0.07 0.06 0.07 0.08Vehbide Regisraon 0.07 0.02 0.01 0.01 0.01 0.01Fmns & Towing n.a. n.a. na. n.a. La. na.Road Worthiness Test 0.32 1.13 0.23 0.25 0.25 0.26Paking Charges n.a. n.a. n.a. n.a. n.a. na.Subtotal Transport 0.41 1.21 0.31 0.32 0.33 0.35

LICENSES 10.31 10.82 11.01 11.94 11.41 11.98Drivers License 0.90 1.04 1.20 1.17 2.77 4.52Motor Vhicle License 6.27 5.15 6.01 6.30 5.97 5.38Hackney Permts 0.37 0.35 'b43 0.54 0.56 0.55Subtotal Transport 7.54 6.54 7.c; 8.01 9.30 10.45Total Transport 7.95 7.75 7.95 8.33 9.63 10.80

EARNINGS & SALES 10.91 n.a. n.a. 22.39 22.87 n.a.STATUTORY ALLOCATION 264.10 318.24 551.48 729.21 982.01 n.a.OTHER 9.52 n.a. n.a. 23.68 11.75 n.a.

TOTAL 378.57 448.63 674.98 909.80 1162.93 183.11

Transport as % of TotalRevenue exc.Stat.Alloc. 6.95 5.94% 6.44% 4.61% 5.32% n.a.

to x

0IData reflect actual revenue for each year.

FEDERAL REPUBLIC OF MGERIA

SECOND MULTISTATE ROADS PROJECT

SUMMARY OF STATE GOVERENT RECEIPrS AND EXPENDITURES(in Naira millions)

I ___________________ -_ _ L_ -- - 'OYOIOSUN

REVENUE/EXPEND. Budget Actual Budget Actual BudgetPATTERN 1989 % 1989 % 1990 990 % 1991 %Statutory Revenue fromFederation Account 590.42 60.60 792.21 58.88 129.00 56.05 982.01 66.96 1262.00 74.13Internal Revenue 298.24 30.62 341.45 27.57 411.54 31.64 380.92 25.97 258.86 15.21Capital receipts 85.55 8.78 167.66 13.54 160.00 12.30 103.64 7.07 181.55 10.66

Total Receipts 974.21 100.00 1238.31 100.00 1300.54 100.00 1466.57 100.00 1702.43 100.00

Current Expenditures 683.55 70.10 688.80 55.90 855.80 65.81 863.93 61.49 934.92 54.91Of which Road Maint. 5.00 7.2 8.12 10.5 7.9Maint. % of Curr. Exp. 0.73 1.00 1.00 1.20 0.53Capital Expenditures 290.66 29.84 543.38 44.09 444.74 34.19 541.07 38.51 767.51 45.09of which Road Capital Exp. 22.77 29.26 32.44 58.72 71.76% of Capital Expenditure 7.8 5.4 7.3 10.9 9.0

Total Expenditures 974.21 100.00 1232.18 100.00 1300.54 100.00 1405.00 100.00 1702.43 100.00

Roads Financing 29.11 36.26 40.56 68.77 71.96Roads Financing as % 3% 3% 3% 5% 4%of Total Receipts

1=--=1 =

a0iX


SECOND MULTISIATE ROAD PROJECT

CAPITAL EXPENDITURE PArrERNS(Naira milions)

SECTOR/Subsector OYOIOSUN

1989 1990 1991_ __ Approved AApproved Acal Approved

ECONOMICAriculkw & Rural Dcv. 26.54 45.44 86.2 64.56 85.26Livestock 0.77 0.9" 2.71 0.20 4.24

}ortty 1.17 na. 0.24 0.24 1.25Fisberies 0.49 0.89 2.67 0.15 3.80Maau&cturing n.a. o.a. n.a. n.a. na.Powe n.a. n.a. n.. n.a. na.Commerce, Finane 14.65 77.41 33.30 39.95 81.77Transport 32.04 107.12 44.57 92.80 89.87Subtotal 74.66 221.81 170.21 197.79 266.19

SOCIAL SERVICESEducation 27.35 31.19 75.31 139.71 103.88Hafth 12.66 31.77 28.43 21.32 60.25in6mntd_ 24.29 23.10 12.38 25.60 38.85

Soeial Deopmet S.2 13.67 6.S0 6.56 12.30Subtotal 69.54 99.73 122.62 193.18 215.27

REGIONAL DEVELOPMENTWaler Supply 32.85 56.25 7035 48.98 97.90Sewerg & Draiage 2.40 6.39 15.92 12.18 57.70Housing n.a. n.a. 18.16 - 25.13 27.69Town & Couty Plnnig 12.99 20.74 18.14 0.70 7.41Community Devlpmend n.a. n.a. n.a. n.a. n.a.Subtotl 48.24 83.37 122.57 86.99 190.05

oI:GENERAL ADMINISTRATIN 94.08 119.33 30.54 S8.00 63.05

GRAND TOTAL 286.52 534.24 445.94 535.96 735.21 w x

o wTnspot e as % of I WTotl Capital bExEnd 11.81% 20.05% 9.99% 17.31% 12.22% W

- 44 -

Page 1 of 5

Mm %1PUBL1C OF MGMA

3CQ MUfII ROQADS URQa

State m MaIninaa St LR2W i!

Ititrdiction

1. Desirable costs for recurrent (routine) maintenac of state roads range from aboutN7,000 per km for the lower volume unpaved roads (ADT < 300 vpd) to about N17,900per km for the higher volume (ADT > 1500 vpd) asphalt concrete roads. When theannualized costs for periodic manteance are also added, total mntenance costs (excludingrehabilitation and constuction) range from N 18,000 to N57,000 per km. On this basis,annual deirable Maintena costs for the sates of Oyo and Osu are N30.5 and N29.5million respedvely, of which recrrent cost constitute N 10.6 million and N9.72 millionrespectively. In comparison, the esdmed total road transport related revenue at the statelevel amounts to N5.98 million and X4.98 million in Oyo and Osun respectively. Tables 1and 2 give summaries of the recurrent maintenamce costs and total (recurrent and periodic)maitenance costs in relation to the total transport related revenue generated in the two states.

2. As seen from these tables, the revenue amounts to oidy 19% and 16% of the totlmaintenance costs or 56% and 50% of recurrent maintenance costs respectively, for Oyo andOsun.

Ir- Rdat Ran=

3. Table 3 shows typical rates of road user charges and fees currendy levied by the statesin Nigeria and the specific ones levied in Oyo/Osun. Average yearly amounts collected bythe states vary from a maximum of N26 million for Lagos to a low of about N 1.0 million forBenue. The main source of revenue is by far the motor vehicle license fees which representabout 65% of all revenue, followed by driver's license fees amoundng to about 15%. Thetotal revenue collected by all states in Nigeria amounted to N82.9 million in 1988 and N84.8million in 1990.

Cest Rery

4. Table 4 shows a summary of recurrent and total mainteance expenditure required tokeep the entire sate road network in Nigeria in good condition. Recurrent maintenance costsamount to N213 million while total maintenance costs, including periodic maintenance butexcluding rehabilitation and construction costs, amount to N537 million. In comparison, the

I/ Figures in this Annex are based on data available as of December 1991. On the basisof the projected inflation rates and assuming 60% of the cost are in foreignexchange, the expected increase in m_ntenace cost is 18% in 1992, 12% in 1993,8% in 1994 and 6% per annum thereafter.

- 45 -

Annex 3-Page 2 of S

totl revene collected at the state levd in 1990 (N84.8 million) represe only 40% of therecurret maintn requiment, and only 16% of th tota maint en requiement. Toreover at loast the reret mannce costs at the state level, the sates should be requiredto incee on averag the road user ches and fees by a fictor of 2.5. Considaing therates hav not cange gn dy In Mt states since 1986, ths inr woud be rgardreaonable in lIht of the generally high Infladon rate In the coury.

S. In the longr, the full cost of recurrnt and periodic dm ds to berecovered from road users. This can be done more efficiendy by Including a pump sales taxon feud to generate dw bulk of the rwonues neceay for highway mantenance needs.Costitutally, only the Federal Goverment can regulat fud prices and levy sales tax onfuel. A recent study by consultants has esdm that a fuel tax of Kobo 23 on petrol andKobo 9 on dised per liter would be required to trecver fully recurret _ahiceexpenditre on Federa and State roads. Ihe tax would have to Increase to Kobo 61 andKobo 27 per liter respecvely on petrol and diesel respectively, to recover the full cost ofroad maintenance, i.e. recurt and periodic.

iTabl 1: Recurrent Road Maintewce Costs

State Roads Unit Cost Oyo Osun(N/kn) (km) (km)

AC PavedADT < 1500 12,800 153 S0

> 1500 17,900 61 56

SD PavedADT < 1500 10,800 199 276

> 15m 14,900 46 184

UnpavedADT < 300 7,000 259 128

> 300 8,000 368 182

Subtotal 1,086 876

Annual RoutineCosts (Nm) 10.64 9.72

1991 Road Trasport Re e 5.98 4.82

Revenelrota Costs (%) 56% 50%

SouCe: Lr1 inc., Road User Clarges and Axle Load Study, Pbase One Report 1991.

- 46 -Annex 34Page 3 of S

Table 2: Total (Recurrent and Periodic) Road Maintenance Costs

State Roads Unit Cost Oyo Osun(N/km) (km) (km)

AC PavedADT < 1500 39,160 153 50

> 1500 57,500 61 56

SD PavedADT < 1500 33,850 199 276

> 1500 49,450 46 184

UnpavedADT < 300 18,000 259 128

> 300 20,000 368 182

1,086 876Subtotal

Annual TotalMaintenance Costs (Nm) 30.53 29.5

1991 Road Transport Revenue 5.98 4.98

Revenue/Total Costs (%) 19.6% 16%

Source: LBI Inc., Road User Charges and Axle Road Study, Phase One Report, November1991.

- 47 -

Page 4 of 5

Table 3: ate of Road Transport Related State Taxes(Naira per anum)

Mg= VEHICLE LIENSES FEES:

Other than commercial Ave aQe yQo/Osun

1000 kg 50 691500 kg 90 1002000 kg 140 170

mmercial

1000 kg 72 615000 kg 205 2048000 kg 256 252120010 kg 314 28625000 kg 578 46040000 kg 796 790

Annual Hackney gayable by owner

Taxi 150 30D)anfo 125 53Molue 150 106911 Bus 300 106Trailers 250 106Tankers 250 106

Various Fees.

Registration of Motor Vehicle 5 5Change of Ownership 5 5Driver's License Profesisonal 10 10

Private 5 5Examination of Commercial Vehicles 5 5

(every 6 months)

Sources: LBI Inc., Road User Charges and Axle Load Study,Phase One Report, November 1991.OYO Ste Government.

- 48 -A4Page 5 of 5

Table 4: Maintenance Costs fbr State Road Network

Length RecffentManeBgikMaImState Roads (km) (N/knm) Total (Nm) (N/km) Total (Nm)

AC PavedADT < 1500 1,536 11,355 17.44 34,715 53.32

> 1500 171 15,872 2.71 50,912 8.71

SD PavedAPT < 1500 9,133 9,589 87.58 20,989 191.69

> 1500 1,015 13,222 13.42 43,822 44.48

UnpaedADT < 300 4,580 5,799 26.56 14,799 67.78

> 300 7,79 8,402 65.53 21,902 170.81

Total 213.24 536.79

- 49 -AnUneL41Page 1 of 2

Mm"E^ REPUBLI OF lfGERIA

SECOND MULTISTATE ROADS PROJECT

Desl Stagdards

1. New construction In Nigeria follows the Federal Highway Department (FHD) designstandards manuai. 'Mese standards are based on the U.S. AASHTO standards and areacceptable. Relatively little In the way of new contracts for construction on new alignmentswil be undertaken under MSRP.

2. In Nigeria, asphalt concrete overlays are the standard method of applyingsrengthening courses to bituminous surfaced roads. The deteriorated state of the roads oftenrequires extensive rehabilitation or patching before the overlay is applied. In the past, theoverlay thickness applied was often 40 to 50mm, which was frequendy insufficient to carrythe heavily overloaded axles found in Nigeria. The Pavement Evaluation Unit (PEU)etablished under the Sixth Highway Project has developed a methodology for the Nigerianenvironment for dimensioning overlays, which will be applied in the project. All pavementdesig under the project will take into account the recent increase in legal axle local limitfrom 10 to 11.5 tons/axle, as well as a survey of actual vehicle loading. All road designscarried out under the project will take into account the recommendations from the MSRPEnvironmental Assessment Study (Annex 410).

3. All works, including reconstruction and rehabilitation, will be to the standards ofFHD design manual, modified for rehabilitation projects to lower standards, as applicable, asfollows:

(a) Cross Secins

(i) Carriage way width = 6.70 - 7.30m

(ii) Shoulder width = 1.50m each

Overall road width = 9.70 - 10.30m

(b) New pipe culverts: uLamum diameter of 900mm.

(c) Existing culverts to be extended in their present form.

(d) Where soil is subject to erosion, a paved side ditch will be incorporated, aswell as other measures indicated by the environmental assessment to preventerosion.

(e) Low lying sections of road will be raised as necessary with selected filmaterials.

- 50 -

Ann4-1Page 2 of 2

(f) Sub-base and base course will be of naturally occurring material, whereappropriate.

(g) Double bituminous surface treament will be applied where technically andeconomically justified.

(h) Where a reasonable length of existing pavement Is in good condition onlysingle bituminous surface treament will be required.

- 51 -


Tentative List of Vehicles. Equipmept. Parts and Supplies to be pro :

Oyo stat,e Osun Stte

SMOWT FRSC SMOWT FRSC Total

A. Vehicles

Station Wagons 8 5 6 4 23

Pick-up Vans 10 8 18

Saloon Cars 5 3 8

Ambulances 3 2 5

Motorbikes 25 8 16 7 56

Bicycles 90 90 180

B. Light jiRment. forRehabilitation of Gravel

TipperTrudc 4 4 8

Tractor 12 12 24

Trailer 24 24 48

Vibrating Pedestrian roller 8 8 16

Roller Tractor-drawn (8t) 4 4 8

WaterTankTrailer (2m) 4 4 8

Water pump (portable, 75mm) 4 4 8

Power saw 4 4 8

Pick-up 4 4 8

Fuel Trailer (3,0001) 4 4 8

Motorbike (1800 cc) 8 8 16

Bicycle 16 16 32

Puley block and rope 8 8 8

Site tools (set) 4 4 4

C. Othe

Lab and Field Testing Equip.

Office Equipment

Traffic Counfing Equipment

Mobile Axle Load Measuing

Equipment

Surveying Equipment

Design Office Equipment

- 52 - Annex 4-2Page 2 of 4

Hand Too Rgffd=" for Forme Amntou Rod and Ewmere terc

Hiand Tool Unit Cost Reqzdam forforc Cost(N acownt rou*w and ()

em.rioi mantenwwStt _ ____

Cuta 130 400 52,000

Mattock 90 60 5,400

Shovel 180 300 54,000

Spade 150 1S0 22,500

Rake/Spreadr 100 300 30,000

Eand Rammer 250 100 25,000

Pickaxe 240 200 48,000

Axe 200 60 12,000

Headpan 130 300 39,000

Sledgehammer 140 10 1,400

Watering can 70

Crowbar 500 10 5,000

Bucket 60

Wheelbarow 700 100 70,000

Bowsaw 400 20 8,000

Power Saw 8,000 6 48,000

Manual bitumen sprayer 5,000 6 30,000

30m tape 1,000 6 6,000

3m tape 60 12 720

Spirit level 300 12 3,600

Ranging Rod 150 30 4,500

Line level 200

Masonry level S00 6 3,000

Tool handles 30,000

Bicycle 2,500 90 225,000

Total i81: :

Requirementfor 1993/94 (100%) N681,800* 1995 (50%)' N189,400* 1996 (30%) N113,600* 1997 (20%)* N 75,800 N1.060.700 USS55.000)

IThe peroenage sae emmuding the coa of biycles and power ws hib would not be teplae during he projectNeeds of on a stm dat 40% of abveor N424A300 (r2J0r 0

- 53 -


Hand Tool UnR cost Reqadmat for cost(N rouu maaintawe (A)

_________________________ _ ______________ Lu ining pe r St temCutlass 130 50 6,500

Mattock 90 15 1,350

Shovel 180 50 9,000

Spade 150 10 1,500

RaWSprdae 100 so 5,000

Hand Rammer 250 20 5,000

Pickaxe 240 s0 12,000

Axe 200Headpan 130 50 6,500

Sledgebammer 140 10 1,400

Wateg ca 70 Crowbar 500 S 2,500

Bucket 60

Wheelbaro w 700 30 21,000

BOwsaw 400

Power Saw 8,000

Manual biumen sprayer 5,000 . _

30m tape 1,000 _____

3mtap 60_pSpirit level 300

Ranging Rod 1SOLine level 200

Masony lee SW00

Tool handles 12,000

Bicycle 2,500 10 25,000

Total N108,75D- $5,725

Total toolk for 2 M*Uina sacdions Sii45

54 - ~~~~~Annex 4-2Page 4 of 4

Hand Tool RC Gulrerm for Earth Road ReHbi Aon Trining

Hand Tool Unr Cost Requirements for Cost(N) training on lOkm eath (N)

road rehab. sect.

Cutlass 130 100 13,000

Matto0c 90 100 9,000

Shovel 180 150 27,000

Spade 150 60 9,000

Rake/Spreader 100 40 4,000

Hand Rammer 250 40 10,000

Pickaxe 240 80 19,200

Axe 200 S 1,000

Headpan 130 80 10,400

Sledgehammer 140 12 1,680

Watering can 70 30 2,100

Crowbar 500 10 5,000

Bucket 60 10 600

Whelbaow 700 40 2,800

Bowsaw . 400 4 1,600

Power Saw 8,000 1 8,000

Manual bitumen sprayer

30m tape 1,000 6 6,000

3m tape 60 12 720

Spirit level 300 10 3,000

Ranging Rod 150 15 2,250

Line level 200 6 1,200

Masonry level S00 2 1,000

Tool bandles 15,000Bicycle 2,500 20 50,000

N203,5S0= $10,700

Totl tooks for 2 tr& a sedions S21.400

- 55 -


liEDERAL RIEPUBLIC OF MGEL

NMULTISIA ROADS PROJECr II

STATE ROAN MAUEN CONSAKY(State Technical Asshtance Consultants)

Draft Ternu of Rebrenoe

Obiecties

1. The main objectives of the technical assistance are to:

(a) assist in carrying out the planned strengthening of State Ministry of Works(SMOW) roads organization;

(b) ensure efficient and cost-e£fective management of road maintance,rehabilitation, construction, upgrading and planning activities;

(c) train managers, engineers and tedhnicians to carry out their various fimctions,with the objective that all road and equipment management and operatingfuctions can be carried out independently by SMOW; and

(d) in collaboration with a suitable institution in the state, establish a TechnologyTransfer Center for dissemination of information, facilitation of technologytransfer from more developed countries to Nigera, and providing trainingmaterials.

2. The State Technical Assistance Consultants (STAC) will assist and advise SMOWs inimplementing the road program under MRSP II. In particular, the following tasks will becarried out:

(a) assist the SMOWs in planning the execudon and the monitoring of fieldoperations for construction, rehabilitation and maintenance of roads;

(b) assist in planning, implementing and monitoring road mai ace by laborintensive and light equipment assisted methods;

(c) train selected domestic contractors in labor intensive and light equipmentassisted construction methods;

(d) assist SMOWs in preparing Warterly and annual estimates of local budgetrequirements for implementing the roads program;

(e) assist in setting up the statements of completed road works for paymeats fromthe Project and Special Accounts;

- 56 -

Page 2 of 10

(t) assist the SMOWs by cauying out perodic field inspection of the roadsprogram;

(g) aist in the project's procmen of works, services and goods (e.g.equipment, vehicles, spare puts, bitum, fuel), including preparation ofbidding docmet ad subsequet bid euations;

(h) eansur the prper projet oung and Wuditing practices are followedat field uni and hadqu s for road works, equipment and mainenace,and related activities;

(i) computrz the road m mem information system, including financial,cost acaunt and monitori functions;

0) provide and monitor on-the-job taning to managerial, office and fieldpersonel of SMOWs Qioadquaters and field units);

(k) provide technical and instiutional support to LGCs as agreed with SMOWs;

) provitd guidanM to SMOWs in selecting tinees, training maeial andcouses to be attended by stat1;

(m) set-up and implement a system for monDring and reporting developmentalImpacts of the MSRP using suitable indicators;

(n) prepae quaedy progress reports and a project completion reprt at the endof the project; and

(o) identify local university or other nsitution witable for setting up theTechnology Trnsf Center; work out the resource requirements andmodaities for making the Ceoter fuctional; and faciitate its operation.

3. Ihe technical assistance team will consist of,

(a) project manager and team leader (36 mondhs);

(b) a fInancial and accout eert (36 months);

(c) hihway plaer (24 moths);

(d) materals specialist (24 months);

(e) labor based nuction and ontactor development epet (36 months);

(t) management informatin systems spciist (24 months); and

(g) short-tem visits by speaist (m total).

- 57 - AnneAx 43Page 3 of 10

Trainig SpecialistPwurement SpecialistEnvironmental Engineer

Tne technial assitance team will be enaed full time for three years with periodic visitsover two years to monitor implementation of program and to run upgrading courses.

4. Particular functions and qualifications of the technical assistance team are describedbelow:

A. Projfect Ma=e and Tem Leader

The Team leader will assist and advise the Director General and/or the Director of CivilEngineering of SMOWs. In particular, he will:

(a) coordinate and manage all acdvities of the technical assistance;

b) update quarterly, and as required, the state roads program and supervise itsimplementation;

(c) analyze the cost and performance data of the road contractors every threemonths and make recommendations to improve their performance;

(d) prepare manuals of standard procedures for road design and workssupervision, and provide on the job training to SMOW engineers andsuprvirs;

(e) carry out at least on a quarterly basis field inspections to verify the accuracyof the works reporting;

(f) scrutinize and countersign the work accomplishment statements prepared forthe payment of contractors from the Project and Special Account;

(g) assist with and monitor the procurement and utilization of goods and servicesfor all components of the MSRP;

(h) develop and implement training programs and provisions for on-the-jobtaining of SMOW staff and counterparts;

(i) prepawe quarterly progress reports reviewing accomplishments, presentingproject statistcal data, progress in transferring sils to counarts, generaoudook for followig quarter and important project schedule revisions;including provision of other data required by SMOW, the World Bank and co-financiers;

O) assist the implementing agencies in meeting all credit and/or loan agreementobligations and covenants;

- 58 -Annex.Page 4 of 10

(k) assist In the planning, design, construction and monitoring of the state roadsprogram;

OI) participate in the state transportation planning activities;

(m) install and operate a system for monitoring achievement of project objectivesand developmental impacts;

(n) submit a final report summarizing the accomplishments with all relevant datain accordance with SMOWs and Bank requirements;

(o) by the end of the initia three-year period, prepare in consultation with therelevant counterparts detailed procedures for effective takeover of the aboveactivities, and assist other team members in preparing detailed procedures fortheir counterparts; and

(p) be responsible for setting up the Technology Transfer Center in the State.

5. The expert should be a well qualified civil engineer with at least twenty years post-qualification experience, out of which 10 years shall be in managing and supervising roadprojects. He/she should have some experience in Sub-Sahara Africa. He/she should be fluentin English.

B. FHnancialtAgc ting .Exirt

6. The financial/accounting expert will be assigned to SMOWs and will:

(a) Design and install a comprehensive project accounting system;

(b) assist SMOWs in preparing monthly reconciliations of the Ptoject and SpecialAccounts;

(c) assist SMOWs in ensuring that all the required accounting documents areprepared and processed, and make proposals to remedy any deficiencies;

(d) if required, prepare inventory control procedures for SMOWs' divisions andheadquarters;

(e) assist, as required, with the development of software for computerizing theaccountng functions, the inventory management and the cost and performanceaccounting system;

(f) assist SMOW in planning, programming and budgeting for recurrent andcapital expenditure;

(g) train counterpart staff in the use of the project accounting system.

7. The expert should have fill accounting qualifications and, at least 10 years ofaccounting experience in managing multiple road construction and maintenace (or similar)conas and must be able to set up accountng systems in the specific offices of SMOWs.

- 59 -

Page 5 of 10

C. igihway Planner

8. The expert will be assigned the responsibility of planning and designing therehabilitation of existing roads and construction of all new road works included in the project.He/she will:

(a) evaluate current traffic patterns and growth rates;

(b) plan, schedule and monitor all data collection, including traffic counts,condition surveys, and axle load measurements and design work in the ofhceand publish annual reports;

(c) coordinate, review and evaluate data collected, formulate design criteria andprepare multi-year road construction, rehabilitation and maintenance plans;

(d) ensure that designs and documentation conform with approved criteria;

(e) with assistance of local consultants, where applicable, prepare bills, costestimates, reports, bidding documents and other project documentation, andparticipate in bid evaluation;

(t) supervise and direct day-to-day technical performance, review and approvedesigns, supervise preparation of all deliverables;

(g) assist and advise the Team Leader on all technical matters as needed;

(h) review all pavement alignment and drainage data;

(i) take note of the high accident rates in Nigeria in discussing road works, andensure particular attention is given to enhancing road safety, including theneed to improve road aligmments, and arrange for conducting road safetyaudits of all design and rehabilitation works;

fj) provide on-the-job and programmed training to counterpart engineers andtechnicians;

(k) participate in the development of detailed work schedules;

Q) ensure that economic analysis of all proposed investments is performedsatisfactorily; and

(m) ensure that satisfactory environmental assessments are carried out f'r all roadprojects and that recommendations of the mitigation plan are carried out.

9. The highway planner should be a well qualified highway engineer with at least 10years of experience in highway planning and design. He/she should be familiar with thedesign and construction of highways, and have experience in the investigation and datacollection for highway planning, design, construction and maintenance. He/she should beable to give on-the-job training to committed counterparts, and should have adequateknowledge of computers. He/she should be fluent in English.

- 60 -Anum4-Page 6 of 10

D. Materialpeel

10. The eoxpt will be assigned the responsibility of evaluating all matial Investigation,testing, usage and quality control. The materials specialist's tsk will include the following;

(a) inspect sites for verification of site information;

(b) prepare quality control tests and plans for all road works under the project andadvise SMOW, supervise consultants and contractors accordingly;

(c) develop matenals/geotew ical investigation and tesig plan;

(d) direct materis/geotechnical field investigation to confirm materialsinformation;

(e) carry out reconnaissance of quarries for selection of materias, sampling, testpits and testing;

(f) select materi sources, estimate deposits, haulage costs and oversee thetestng and approval of material;

(g) approve materW and instlation standards for subgrade and pavement layers;

(h) in the state of Osun, assist in the establihment of a materas laboratory toenable SMOW to provide technical services for construction quality controland field invesgations for planning and desig work, and

(I) ttain counterpat staff in managing materials laboratory and monitoring qualitycontrol on sites.

11. The Materia Specialist should be a well qualified civil engineer with at least 10 yearsof experience in geotechnical engineeing or soil mechanics. He/she shoud be familiar withthe design of regravelling, overlaying and resealing, and routine maintenance techniques forbiuminous and laterite roads. He/she should be able to give on-thejob training to committedcountepat. He/she should be fluent in English.

E. Labo ase Cendon and Cactor Ibloment slist

12. Under the project, labor-based methods wiUl be used for all routine road maintenanceworks; labor-basedlight equipment supported methods will be used for periodic maintenance,rehabilitation and spot improvements to earth roads. The Labor-basedConstruction/Contraco Development Expert (LCCDE) would have responsibility forasstig SMOW in planning and implementing all laborbed and light equipment supportedroad works to be exicuted by conacos to be trained. Furtihmore, the LCCDE wouldprovie assistace to SMOW in making effective use of its gradually reduced labor force tocarry out road emergency and routne maintenance by force account.

13. The LCCDE woud carry out his/her work under the overall direction and guidance ofthe STAC team leader and in close collaboration with his/her c. These wouldinclude the Assista Director of Maintenance, District and Superintendent Engineers. In

- 61 -

AnnexPage 7 of 10

addition, two selected enges would be trained by the LCCDE to gradually take overresponsibilities. Thes two eieers would, in advance of project commencement, havereceived Itrductory trainig under a UNDPIILO supported labor-based uiftastructureprogra exted by the National Diredorate of Employment (NDE) of the Federal Ministryof Employment and Ptoductivity.

14. It is sugges that LCCDE arange with the Federal Highways Department (PHD) inthe Federa Ministry of Works to agree with ILO on information sharing and support in PHDin the area of labor-based/light equipet supported road construction and maintenmcemethods. Tbis may encompass without being limited to:

(a) routine exchange of relevant information, data and special study findings;

(b) ILO taining materW made available to SMOW and vice versa;

(c) mutual participation in selected seminas and workshops organized bySMOWs/STACs and ILO,

(d) SMOW staff and contractor short term participation in ILO special trainingmodules; and

(e) as appropriate (NDE)IILO pardcipation in relevant parts of FHD/FEDTAC-SMOW/STAC coordination meeting.

15. In greater detail, the LCCDE, in close collaboration with his/her counterparts, shall:

(a) armnge for introductory visits to NDE/ILO work sites and trning activities;subsequendy, if feasible, agree on and implement short term specializedtaining for SMOW staff and contaors at NDEAILO training sites;

(O) review with NDE/LO possibilities for contctors trained under the NnElILOprogram to execute works under the muldistate roads project;

(c) elaborate training materials suitable for taining of various categories ofSMOW staff, domestic conrs and consultants. As appropriate, thetraining mateial, to be consolidted into traing manuals, could be based onmateral produced under the NDE/LO program. Furthermore, thePHD/PEDTAC wold provide coordination between the various SMOWs toavoid duplication of eforts;

(d) asist SMOW and local consultants in design of works to be carried out bylabor-based methods;

(e) assist SMOW in edl ng bidd documents suitable for:

(i) routne road m d work;

(h) pero maintenance of earth roads; ad

(Cii) rehabilitation and spot Improvemets of earth roads;

- 62 -Annex 43Page 8 of 10

(f) assist SMOW and consultants in supervising labor-based/light equipmentsupported) works by contract. Elaborate supervision procedures in a shortmanual (this to be coordinated by FHD/FEDTAC);

(g) establish contact with the Kissi Training Centre in Kenya and affange forSMOW staff to participate in the training;

(h) assist, as appropriate, in the systematic planning of maintenance andrehabilitation activities including those emergency and routine maintenanceactivities to be carried out by force account with a gradually decreasingSMOW labor force;

(i) train at least two trainers who would gr. Jually take over responsibility fortraining from the LCCDE, and at the LCCDE's departure be filly capable ofundertaking continued future training;

(i) contribute to the elaboration of the following SMOW/STAC reports:

(i) inception report to be issued six weeks after commencemeat ofconsultants services;

(ii) quarterly progress reports;

(iii) special reports as warranted; a'sd

(iv) terminal training report summarizing experiences other than thoseincluded in manuals.

16. The LCCDE will train his/her counterparts and oversee the training being carried outby others. The LCCDE shall gradually and systematically transfer know-how andresponsibility for his/her assignments to the counterparts and others as appropriate. Capacitybuilding is a prime objective of the project and will be closely monitored and reported on. Incase of inefficiencies or delays being observed corrective action must be taken.

17. The LCCDE should be a well qualified civil engineer with at least 10 years relevantpost-graduate experience to a large extent acquired in developing countries, preferablyincluding Sub-Saharan Africa. Hetshe should be experienced in planning, design andexecution of low cost roads where labor-based methods are used. In particular, the LCCDEshould have substantial experience in providing training to engineers and technicians inapplying these methods. He/she should be fluent in English.

F. J &namement Information Systems Soedalist

18. The expert will be assigned the responsibility of developing a managementinformation system to automate road management accounting and tracking:

(a) computerize the road management reportng system and choose and installappropriate software for the MIS;

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Page 9 of 10

(b) establish a system for synthesizing and updating data on road networkinventory and condition;

(c) create a database to collect financial information and assist financial expert indesign and implementation of the project accounting system;

(d) assist SMOW in selection of computer hardware and software for MISapplication, install the appropriate systems and train counterparts and SMOWstaff;

(e) develop monitormg and scheduling systems to give up-to-ate information oneach contract, contractor, consultant and on physical progress;

(t) install and operate an appropriate system for monitoring developmentalimpacts and skills transfer achievement; and

(g) mount basic training courses for selected SMOW staff.

19. Ihe expert shoulld have 15 years experience in management information systemdevelopment and database management systems, and have a degree in MIS or computerscience. Candidate should have full knowledge of word processors, spreadsheets and commonapplications programs and have the ability and experience in training others.

Short-Term Visits by $Secalists

20. These experts will spent a total of 8 man-months.

(a) Trainings Speiali. Assist in the instittional development. Develop amanagement training program to train managers in: planning, programmingand budgeting for recurrent and capital expenditures, procurement,supervision, quality control and contract management, organization andmonitoring of programmed maintenance by contract, and financial accountingand control. Assist in training management in monitoring developmentalimpacts of infrastructure investment.

lTe Training Specialist should be an engineer with 15 years of experience inthe management of capital projects, preferably roads, with experience infinancial accounting, project management, and development monitoring.

(b) Procurement Specialiat. Assist in the project's procurement of works,services and goods (e.g. equipment, vehicles, spare parts, bitumen, fuel),including preparation of bidding documents and subsequent bid evaluations.

The Procurement Specialist should have 15 years' experience in capitalprocurement and contract administration, and be familiar with thedevelopment of ICB and LCB documents under World Bank guidelines.

(c) Environmenal Egin. Assist in building capacity for environmental impactassessment of roads. Assist in and train SMOW staff to determine if the roadsare passing through any sensitive area which would pose serious

- 64 -

&=@X 4-3Page 10 of 10

envronmentl concer. Detrmine If there are any rlocations expecd toresult ftom the contuction of these roads. Work with e Eironmempact Commission or withe Envronmentl Impact Assment Unit to

prepare an viromea Impat Asesnt report.

The Enironmental Engineer should have 15 years erience In thedevelopment of e enl impact studies, preferably those relaWt to roadconstruction and land development.

21. Deliverables:

Management tining reportIstitutional development reportTender doumentsDatabase: software and opeting manualsGeotechnical laboratory: opating procedures manual, tests, traiing reportMonthly reports on design progressMateria availability reportsConstruction cost esmates and bill of quanties.

Transfer of sldlls and know-how to LIcal Stan

22. Consultants we required to progressively transfer skldls, know-how andresponsibilities to their local counteparts. Development of and agreement with the client of adetailed program for achieving this transfer of skills and know-how is very esental. Theextent to which such a transfr is atually effected wil be taken into accoun in the evuationo consultant's performance.

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Annex 44Page 1 of 6

FERA REPIBLIC OF NIGEIU

swim NE MULIStm RO A II

NManwe Rrftvegmet and Training

1. Tne ability of SMOWs to plan and implemnit effectve road gnteac andrboilitation has traditionally been very weak:. lti has often been due to a variety of fiwcorssuch as insufficient operating budgets, excess nmnbars of marginally qualified staff, lack oftools and equipment, and poor nuageen of available resources. While sometiarecognizing these institutional consrits, ShlOWs have been ineffectve ill improving dhidrcawt to maintain the state road networks with the result tbat many state road systms aredaeiorating at a faster rate tha they ar being naingned. Now, after seveal decaes ofpoor maaeetand widespread road deterioration, bot the Federi and State Govanentwfe rewpgizing the need to make drastic changes in the way they carry out road maneanceopertons. After an extensive review of various altenative strategies, it has been decided totransfer the major portion of road nmahtence worksa from force account operains curiedout by the SMOWs to private contacwtos. To this and, SMOW staff in the dime pilot states.w;l overme works carred out by local contactors. By being telieved from the nmaagementof force accaunt opeaSons, the SMOWs wil be able tD concenae on ptuningy, design, ands*vision of contacts, while the conlEtoals will be able to ca¢y out dbir responsibilitieswihout the typical bureaucratic constai tfat had prmvously plagued the SMOWs.

2. Due. to the natur of the ptoposed road maintence program, manpower developmentwill take on a limited role in 1hat (i) only small nmes of SMOW persnnel will requireftWan in contrac manaement, and (ii) conutrcors wHil be motivate to acquire nwcesaskill by competitive means within the labor market. Ihis does not preclude, however, theneed to provide a firum for Govermnen agencies and the costmtion industry to exchaneideas, educate the work-force, and provide general channels of cmuiaonbetween allparties in the sectr. To addres fth need, the Goveomiet wishes to contne and expandXhe use of Technlogy Transfer Centers initate under the ongoing Highway Sector Loan (seeAnnex c43). In order to achieve these objectives, the project will financ thie followingactivities:

(a) Tmaioing fr SUMO and FMWH Staff, Selected senior and mid-level SMOWstaff from the pilot state and from FMWH will have need to attend various

intrnioalworkshops, _sem, confereces and/or study tour during theproject implementaton period. Participation in this component wt-. beeffected according to an anmual traning plan to be prepwed in advance bytwaBh SMOW and submited to the Bank for review and nona-bjecsion prio tD

implmenetio. Tne training plan will identify:

- 66 -

Ann"e Page 2 of 6

(i) each participant including job title, and length of service;

(ii) the training venue, including the purpose and/or training topics, andthe duration of training; and

(iii) a breakdown of travel, tuition, and living costs.

The purpose of the above training plan is to establish a standard andacceptable procedure for manpower development that will maximize the use ofavailable funds, and minimize ad hoc participation without proper planning.The foreign exchange available for this component is to be accounted for onan actual cost basis and is not to be used to pay Government Estacodeallowances. In conformity with the Bank's Articles concerning payment foractual costs, while at the same time recognizing the Estacode requirements,the project will finance only actual costs of travel, tuition and living expenses,with any difference between actual costs and Estacode allowances being paidby Government from other sources.

(b) Instom Designed Core.ternational organizations, such as theInternational Roads Federation RpF, and other teaching institutions abroad,over the years, have produced a great deal of training materia' related tomaintenance and rehabilitation of roads. They -lso have programs forconducting customized training courses in host countries and abroad. Ihesecourses could also be conducted for training of trainers. lhe participatingSMOWs and FMWH could avail themselves of these training courses andmaterials under the project. Where feasible, the training will includeattachments to Road Authorities, Construction Firms and Materials testingfacilities.

(c) Technology aMfe Centers JI.O. Under the ongoing Highway SectorLoan, contacts were established between FMWH and the National HighwayInstitute (NHI) of the U.S. Federal Highway Administration (FHA). NHIoperates a network of technology transfer centers (called T-Square Centers)throughout the United States and has extensive experience in the disseminationof road sector information. With the objective of setting up similar types ofcenters in Nigeria, the Government decided to establish a Technology TransferCenter within FMWH which would then form the basis for establishingsimilar centers at the state level. Under the proposed MSRP, work begununder the Highway Sector Loan will be intensified to provide capacity at thestate level to meet the technology needs of SMOWs and the constructionindustry. In this regard, the project will finance:

(i) local costs and the provision of facilities to administer the extensionprogram to the two states;

(ii) the cost of purchasing andlor reproducing the various software andtraining materials to be provided by NHI and other sources;

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Annex 44Page 3 of 6

(iii) local costs to conduct seminars and workshops for SMOW personneland contractors over a five-year period; and

(iv) the costs of training local environmental specialists in assessingenvironmental impacts of road projects (One from FMWH, and oneeach from Oyo and Osun SMOW).

In order to implement the above program, FMWH and the SMOWs willprepare a plan for staffing and provision of facilities for the TechnologyTransfer Centers to be ready for Bank review by the time of projecteffectiveness. The plan will follow the staffing guidelines already establishedunder the Highway Sector Loan (see Annex 43) and is to include adescription of facilities and equipment required along with a proposed annualbudget for each of the eight years of project implementation. In addition, theplan will indicate the training requirements of SMOW personnel and theproposed activities of the Centers (i.e. workshops, seminars, production ofmaterials, etc.).

Cost Estimates (Per State): Equivalent US$ (million)

LTal Foreign

(a) Training SMOW and FMWH staffincluding seminars, study tours 0.05 0.60 0.65

(b) Custom Designed Courses andpractical attachment 0.05 0.20 0.25

(c) TTC(i) Facilities

(ii) Software & train. materials(iii) Seminars & workshops QI20

Total Q.L0 1.25

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Page 4 of 6

FEDEBALLRMU QIUM

SEOND MULTSall ROADS PRC)1

TeOnoogIm lhnsfe Coda

1. The concept of establishing technology transfer cete througout Africa wasendorsed at thie I18th World Road Congress sporsored by the Parmalnot lnwnationalA&ciation of Road Congresse (plARC) during their meeting in Brussels in 1987.Establi-shing centers in Nigeria would be the firs step in reaching the PUMRC goaL Ibo longrange goal is to establish an Africa Technology Tramfer Cente suPPorted by reneXe cenprovided widiin each country. Ultimatey Nigeria, due to its pionefla jntafve, wouldBecome the nucleus for the technology transfer progrm wkhin the continent of AfricL

2. in essence, technology transfer addresses nlot only technical sMdl but als muuuuriland supervision aspects as relevant and appropriate to the Nigerian cotet Ihis consultaservice will be provided to the FHD under the Highway Sector Loan.

Canaftm Assignment

3. The main objective of this part of the consultncy assignment is to assist the FederalHigways Department (E7HD) to establish a network of Technology Tranfer Cenlters (ITC-s)modeled after similar centers successfilly established in mnore developed counuies. Ihe main-YTC, which could be established in Lagos directly under PHD, would include direc lWpwith a major ITC center abroad, such as the United Staem Federal Highway Adm;'imtoIWA). T.his linkage would include access to several hunde miin wounss taninigfilms, student textbooks, and user mamals. PHD will have the capability of sendinginstructors to the United States National Highway Insdbtue (NHI) for the putpose of taking thetraining and then transferrng the. entire training course to Nigeria. Ilastuctors would beNigerian highway engineers from FHD, if available, or hired engineers. Alteratvely,engineers from the Unitd States or elsewhere may come to Nigeria to provide the wtrann.

4. In addition to increasing mhe technical abllities of PHD, mhe technology is to be sharedby the Highways officias in the Nigerian States. At first, diree pilot state highway TTCs,will be established as part of mhe MSRP. The initial stat cear will be served by dieprimary 1X operafti within the F}ID. Ibe pfimay center will provide services to theFHD field offices.

S. The objectives of the Nigerian TIC system are to:

* Establish a mechanism for transferring highway technology *nom the UndtStes and other counties to Niger!an usportaton officis.

OEncourage the use of innovative, cost-effeettiv technoogy within NigetiaL

- 69 -

Pago 5 of 6

* Provide lines to receivo bchology from tranfer syems oprati inother parts of the world (such as Pan American lnstituto of Highways, Canadaand China).

* Demonstae new technology so that it can be quickly used wifthin Nigeria.

* DZetermine highway training needs whin Nigeria and provid traning to PHDand State employees.

* Synthesize the succsful application of new technology in one center so that itcan be used by other centers.

* Establish a ?IC within the FHD. The minimum stafing should include onefull-time experienced engineer (center director), one fil-time secretary andtwo well-trained highway techncia.

* Estblish two pilot TTCs in the States pardcipatig in the MSRM: ligawa andKano. The minimum stfing should include one ful-tm expedenceengineer (center diror) and a full-time secretay. in addiion to operatgthe center, this staff will also be available to assist the MSRP StateCoordinator.

* New TIC center dieor all be provided traing (one month) in the NH!of the U.S. FHWA and selected state highway d in the U.S.

* The taiinng currey provided by the FHD maintenance training cees atBadgy, Kaduna and Ugnekl is crtical to the mannan of Niganhighways and to the success of the MSRP. The himediate task of theNigerian TMs should be to provide high quality traning materias and visualaids to the 1,200 students trained each year.

* Locate and distribute technical data and iformation throughout Nigeria.

* Publish quarterly a newslette nrming federal and state tnoraonofficials of new and existing technology available to Nigeria.

* Maintain mailing lists of transporton officials.

* Conduct at least six seminars each year.

* Provide tcnology trnsfr materials.

* Perform a yearly self-euation and prepare annual report.

* Complete technical development and demonstratIon projects.

* Provide technological and training support to ensure that road projects do notcause unnecay envonmentl or social damage, and support theimplementaion of enviro impact _ of road projects.

- 70 -


* Establish a IfC advisory comnittee.

llmetable

6. The timn for implementing the TlCs will be as follows:

(1) Signature of Consultancy Contract, Month 00.

(2) Outline plan of action for TrCs, Months 00-04.

(3) Establish TICs, give technical support and complete all training under TICs,Months 05-14.

(4) Evaluate TICs and develop policy for long-term sustainability, Months 15-22.

(5) Produce Draft Final Report, Month 23.

(6) Produce Final Report, Month 24.

'mdlrX

7. The following reports will be produced for FMWH and World Bank information.The World Bank will be supplied with four copies.

(a) An Inception Report three months after contract signature and ProgressReports at three-month intervals commencing at Month 06; and

(b) A Final Report describing the TrC InfWomation system and trainingconducted.

_ 71 -

Page 1 of 4

FEDEtLRE,IEPUB=<I OFWGERI

SECONDM= llOADS I RS

Draft Terms of Referenc for 1rWeet Oversigbt

(Feddrl Technical Coordinadon Assistance)

1. A Nadonal State Roads Program (NSRP) is being considered for fimding by theWorld Bank and other lending institutions. The funds will be used to upgrade, rehabilitateand maintain state road systems. The First Multistate Roads Project (MSRP) is the initialphase of the NSRP. The Federal Mmistry of Workm and Housing (FMWH) has agreed to actas the Apex Agency for the MSRP. This terms of reference covers the functions of a FederalTechnical Assistance Coordinator( FEDTAC) for the project. The FEDTAC is to help theFMWH provide assistance in coordination and an independent assessment of theimplementation of the MSRP.

2. Two states were selected to participate in phase I of the MSRP (Kano and Jigawa),and another two in Phase II (Oyo and Osun). Each ste will hire a State TeonicalAssistance Consultant (STAC) to help them carry out their project. Each STAC will helptheir state contract and supervise the road upgrading, rehabilitation and matenance programfunded urder the MSRP. Also, the STACs will train counterparts to do the same functions inthe future. The FEDTAC will help the FMWH monitor and evaluate the performance of allMSRP participants. This includes each State, each State's STAC and the contractors hired byeach state to do the work.

3. Other stes will be added in the future. The PEDTAC will continue to help theMSRP as additional states are added to the Project. Further, the FEDTAC will help theMSRP identify future NSRP states.

Objecthe

4. The FMWH is the Apex Agency for the MSRP. The consultant hired as theFMWH's FEDTAC will help the FMWH objectively monitor and evaluate the effectivenessof the participating states in the MSRP. This oversight function is being undertaken to allowtimely improvements and corrections to the project This process is directed towardenhancing the success of the MSRP.

So of Work

5. The FEDTAC is principally an advisor to the FMWH. Ihe work comprises:

(a) Visiting each participating state at periodic intervals and collecfting infomatonto use in evaluating the performance of the State, the STAC and thecontractors.

- 72 -

MMea 4-5Page 2 of 4

(b) Advising tho PMWR on the progres and achievements realized in each stateand helping the FMWH Identi other states to include in future phases of theprojec.

(e) Preparing reports to document their assessments with reco ns forImproving the MSRP implementatin proce.

6. Monthly, the FEPrAC is to visit each State participaing in the MSRP. These are tobe random visits. The state, STAC and contractors are to cooperate with the FEDTAC andmake available, for examination, any information requwed by the FEDTAC.

(a) The FEDTAC should provide each state with a list of the types of informadonihat wfll be sougt durig each vist This list should be mede available to thestae bdere the FEDTAC's first visit. he list should be annotated as neededdurng the project. Revised lists should be forwarded to states at intervals.

(b) The FEDTAC should meet with the STACs and determine how efecvdy theSTACs are doing their tas. He should judge the overi caliber andpfomance of each STAC's staff member. Included in the review wil be anassessment of the following STAC activities:

- Supvsing construction work and checking work progress.

- Monhorn the quality and conformance of mat sto spcficatons by ordering and evaluating appropriate tests adresults.

- Insuring contractors comply with safety guidelinesand directg contractors through SMOW to carry out measureneeded tn insure safety.

- OAssistng the State plan, execute and monitor routine and periodic

- Helping the State MOW to budget road progranus to ensure thadequate funding is included in the State's budget each year.

- Guiding the State obtain works, services, and prepare bid doc _nnts.

- Monitoring and approving accounting and auditng acivites.

- Assesdsng progress on the comptiz of road manaementInomtion.

Training countepart personnDel.

Pwovidin tehical assistance to LGCs as needed.

- 73 -Annex4Page 3 of 4

Maintining a Daily diary of events relevant to contracts.

Vetting of submitted as built drawings from the contractors.

Ensuring sound enviromental procedures are being applied.

Preparing monthly progress reports for the State which will includeminutes of site meetings with the Contractors.

(c) During the monthly visits, the FEDTAC will examine road projects and assessthe contractores performance in:

- Complying with consultant's reports on qualityand work completion.

- Adheting to safety guidelines.

- Removing and replacing unsuitable materials and work as directed bythe STAC and State.

(d) During site visits, the FEDTAC should determine how timely the contractorsare being paid. If there are delays, the reasons for the delays should beestablished and recommendations made for corrections.

(e) During monthly visits, the FEDTAC will evaluate how effectvely the State'sc pesonnel are adaptng to the techniques being provided under the

tehnology transfer fimction of the Consultants. This should be based on:

- How well the STAC Is transferring the skills and knowledge identifledin the STAC terms of reference to the local counterpart stff. Thisincludes examining the requirements for counterpart certification andthe progress made by counepart staff towards certification.

- The adequacy of the STAC/Counterpart facilities, transportation andbudget

- If individual counterpart staff members are capable of leaming andperfming their designated job assignments without STAC assistancein the futre.

- if all countrparstaff positions are flled.

(t) Review and endorse any proposed replacements or subsftiutions proposed bythe STAC for counterpart staff. Replacements will be required whencounterpat leave. Substttions will be necessary when current counterpartstaff prove incapable of performing their designated job assignments.

- 74 -


7. The FEDTAC is to work directy for and report to the FMWH's Deputy Director ofFederal Highways, Planning [DDFH(P)J. The FEDTAC should orally brief the DDFH(P)weekly and cover:

(a) His previous week's activities and his plans for coming weeks.

(b) Critique and assessments of the State Ministries of Work and Transport(SMOWs), the STACs and contractors as reflected in trip reports. Tripreports are to form the basis for monthly progress reports.

(c) The current monthly progress report contents as proposed by the FEDTAC.

(d) Any activities of the FMWH that impact on the conduct of the MSRP.

8. The FEDTAC is to prepare monthly progress reports covering his findings andevaluations of the SMOWs, STACs and Contractors. Six copies of the report should bedelivered to the FMWH within one week of the end of each month. Also, two copies of thereport should be sent to each participating state. The contents of the monthly reports shouldbe summarized in quarterly progress reports. Twelve copies of this report are to be deliveredto the FMWH. Two copies of the report are to be sent to each loan agency participating inthe MSRP.

9. The FEDTAC may be required to the FMWH in ideutifying candidate states for anexpanding NSRP. The FEDTAC is to work with FMWH's Pavement Evaluation Unit (PEU)in developing high priority rehabilitation prograns for candidate states.

10. At six month intervals, the FEDTAC will arrange to present a seminar to a1lparticipating states. The purpose of the seminar will be to review the progress being made onthe MSRP. Problems encountered will be identified and discussed. The success of proposedsolutions to problems reviewed. The objective will be to gain an exchange of ideas that can ifimplemented increase the opportunity for success in the MSRP.

11. The expert filling the FEDTAC role is to be a well quaiified highway engineer. Tbisexpert should have at least ten years post-Qualification experience. Also, the expert shouldhave five years of project managing and supervising experience. He should have sufficientcomputer skills to use word processors and spreadsheet programs in preparing documents andreports. Some experience in sub-Sahara Africa will be desirable.

12. The PEDTAC should be able to handle up to four states concurrently. Once morestates become involved in the MSRP, the FEDTAC should have assistance. Any assistantshould be a highway engineer with at least five years post qualification experience. He/sheshould have some experience managing and supervising projects and be conversant withcomputer use. Staffing for the FEDTAC function should be as follows:

a) One to Four States ............... FEDTAC &lassistatb) Four to eight States ............. 1 FEDTAC & 2 assistantsc) Eight to twelve States ........... 1 FEDTAC & 3 assistantsd) Twelve to sixteen States 1 FEDTAC & 4 assistants

Federat Repubfic of NigeriaOyo State Ministry of Works and Transport

Proposed Multistate Rd ProJ.IITable 1. OYO STATEetai ted Cost Table

Hafra

Totals Including Contingencies Breakdown of Totals Incl.Cont.Base Costs in USS US$ USS1992 1993 1994 1995 1996 1997 Total 1992 1993 1994 1995 1996 1997 Total F.Exch Local Taxes Total

1. INVESTMNET COSTSA......i..........A. CIVIL WRS

Upgrading 0.00 1.18 2.53 2.53 2.53 1.77 10.54 0.00 1.36 3.03 3.15 3.27 2.37 13.18 8.56 4.31 0.30 13.18New Construction 0.00 1.00 2.50 2.50 2.50 1.50 10.00 0.00 1.15 2.99 3.11 3.23 2.01 12.50 8.12 4.09 0.29 12.50Rehabilitation 0.00 1.55 3.21 3.21 3.21 2.08 13.26 0.00 1.79 3.84 3.°9 4.14 2.79 16.56 10.76 5.41 0.38 16.56Maint. by Contract 0.00 0.20 0.50 0.50 0.50 0.30 2.00 0.00 0.23 0.60 0.62 0.65 0.40 2.50 1.62 0.82 0.06 2.50gravel Road Rehab. 0.00 0.30 0.75 0.75 0.75 0.45 3.00 0.00 0.35 0.90 0.93 0.97 0.60 3.75 2.44 1.23 0.09 3.75Spot toprveent 0.00 0.06 0.14 0.14 0.14 0.07 0.55 0.00 0.07 0.17 0.17 0.18 0.09 0.69 0.45 0.22 0.02 0.69..... ...... ..... :.;... . ... ....... ...... ........ ...... ....... . ------ ------.. ------ ------.. ------ ------.. ------ -------. ------- -------.. ..---.-.--- . .. .......... .... _. ...St&-Total 0.00 4.29 9.63 9.63 9.63 6.17 39.35 0.00 4.95 11.53 11.98 12.43 8.27 49.16 31.96 16.08 1.13 49.16S. Vehicles 5 Equipments 0.00 0.40 1.60 0.00 0.00 0.00 2.00 0.00 0.46 1.92 0.00 0.00 0.00 2.38 1.90 0.12 0.36 2.38C. rechnicsa (ssistenceProject Mangement 0.00 0.85 0.85 0.85 0.15 0.00 2.70 0.00 0.98 1.02 1.06 0.19 0.00 3.25 2.76 0.32 0.16 3.25Osgfn, Engrg. & Slperv. 0.00 0.21 O.S2 0.52 0.52 0.31 2.10 0.00 0.24 0.63 0.65 0.68 0.42 2.62 2.23 0.26 0.13 2.62 -p.. ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ . . . ... sSb-Tlotal 0.00 1.06 1.37 1.37 0.67 0.31 4.80 0.00 1.22 1.65 1.71 0.87 0.42 5.87 4.99 0.59 0.29 5.870. Training 0.00 0.20 0.20 0.20 0.20 0.20 1.00 0.00 0.23 0.t4 0.25 0.26 0.27 1.25 1.00 0.25 0.00 1.2S... .. ...... ...... ...... ...... . . . . . . . . . . . ....... ...... ...... ...... ...... ...... ...... ....... .. . ..... ....... .......Tota I0NVESTMENT COSTS O.00 5.95 12.80 11.20 10.S0 6.68 47.15 0.00 6.86 15.34 13.94 13.S6 8.96 58.66 39.85 17.03 1.78 58.66a*=== 2==X=U1 t====a= 3==== n===== 220CU2 vn=== 0==-a= ==3-;= =s===Su #===3 3=3== at3=== ==3533 CS- === 5_= ==== 35=Totat O OO 5.95 12.80 11.20 10.50 6.68 47.15 O.Q0 6.86 15.34 13.94 13.S6 8.96S 58.66 39.8S 17.03 1.78 S86

Vatues scaled by 1000000.0 10/2611992 0:50

0I

4.5

federal Reputf4c of figeriaOsun State Ninistry of Uorks and Transport

Proposed Nuttfstate Rd Prol.Z'Tabte 2. OS3 STATEPetal ed Cost Table

Matra

Total8 Inctuding Contirngencies Breakdown of Totals Inct.Cont.Base Costs in US% USS uS$

1992 1993 1994 t995 1996 199T Total 1992 1993 1994 199S 1996 199? Totat f.Excb tocat Taes Totat1. INVESTM COSTS

..... ........ .

A. CIVIL UISUpgrading 0.00 !.4S 5.38 5.38 S.38 3.31 21.90 0.00 2.82 6.4 6.69 6.95 4.44 27.34 17.77 8.94 0.63 27.34M Constructfon 0.00 O.3 0.87 0.67 0.87 0.52 3.49 0.00 0.40 1.OS 1.09 1.13 0.70 4.36 2.84 1.43 0.10 4.36Rebabilitation 0.00 0.80 1.41 1.41 1.41 1.03 6.06 0.00 0.92 1.69 1.75 1.82 1.38 ?.ST 4.92 2.47 0.17 7.57Nafit. by Contract 0.00 0.20 o.so 0.50 o.so 0.30 2.00 0.00 0.23 0.60 0.62 0.6S 0.40 2.50 1.62 0.82 0.06 2.50Naterial Lab Buitding 0.00 0.06 0.14 0.14 0.14 0.09 0.58 0.00 0.07 0.17 0.18 0.19 0.12 0.72 0.47 0.24 0.02 0.72Bravwl Road Rehab. 0.00 0.30 0.75 0.75 0.75 0.4S 3.00 0.00 0.35 0.90 0.93 0.97 0.60 3.75 2.4 1.23 0.09 3.7SSpot Iqzrovement 0.00 0.06 0.14 0.14 0.14 0.07 0.55 0.00 0.07 0.17 0.17 0.18 0.09 0.69 0.4S 0.22 0.02 0.69

Sub-Totl 0.00 4.22 9.20 9.20 9.20 s.7 37.58 0.00 4.86 . 11.44 11.88 7.73 46.93 30.51 15.31 1.08 46.93S. Vehicles 9 Equipments 0.00 0.40 1.60 0.00 0.00 0.00 2.00 0.00 0.46 1.92 0.00 0.00 0.00 2.38 1.90 0.12 0.36 2.38C. Technical AssistanceProject NMagement 0.00 1.00 1.00 1.00 0.30 0.00 3.30 0.00 1.15 1.20 1.24 0.39 0.00 3.98 3.38 0.40 0.20 3.98sign, En£rg. & Superv. 0.00 0.20 0.51 0.51 0.51 0.31 2.04 0.00 0.24 0.61 0.63 0.66 0.41 2.55 2.17 0.25 0.13 2.55

Sub-Total 0.00 1.20 1.51 1.51 0.81 0.31 5.34 0.00 1.39 1.81 1.88 1.OS 0.41 6.53 S.SS 0.65 0.33 6.530. Trainfng 0.00 0.20 0.20 0.20 0.20 0.20 1.00 0.00 0.23 0.24 0.25 0.26 0.27 1.2S 1.00 0.25 0.00 1.2STotal INVEStMENT COSTS 0.00 6.02 12.51 10.91 10.21 6.28 45.92 0.00 6.94 14.98 13.57 13.18 8.41 S7.09 38.96 16.37 1.76 57.09

83~UU*u3~ U==== ~~m uu~= m--- an ==am= sun=m 3333g .. ouu3.3g333 owns". ==us*= 0=0U. uswasuB 3mU=z*a ma===. aTotat 0.00 6.02 12.51 10.91 10.21 6.7 45.92 0.00 6.94 14.98 13.17 13.18 8.41 57.09 38.96 16.37 1.76 57.09

- Values scaled by 100000.O 10/24/1992 23:16

0S

K.1Nt

Fedawat flpMIc of SNiweaFrwt NInItr of VW* an Nousing

P dqxmM ulUtistate Ad Proj.IlTeAl 3. FEDEUAL NInIsUT OF WmS & NOStI

Oet8Iled Cost Tblelaira

Totals Including ContinofncIes Breakdown of Totals Incl.Cont.Base Casts in US1 0S usS

1992 9397 Total 1992 1993 1994 1995 1996 1997 Total F.E=ch Local Taxes Totat

1. INESTNT COSTS................

A. TECHNICAL ASSISTANCETECHNICAL ASSISTACE 0.00 0.16 0.80 0.00 0.18 0.19 0.20 0.21 0.21 1.00 0.87 0.07 0.05 1.00TRAINING 0.00 0.02 0.10 0.00 0.02 0.02 0.02 0.03 0.03 0.12 0.12 0.00 0.00 0.12STUDES 0.00 0.22 1.10 0.00 0.25 0.26 0.27 0.28 0.29 1.37 1.12 0.18 0.07 1.37

.. ; ... .... .. ..... . ... . ....... .... ... ..... ..... ..... .... .

Su-Total 0.00 0.40 2.00 0.00 0.4 0.48 0.50 0.52 O.S4 2.49 2.12 0.26 0.12 2.49

Total INVESTENT COSTS 0.00 0.40 2.00 0.00 0.46 0.48 O.SO 0.52 0.54 2.49 2.12 0.26 0.12 2.49n33332333=333 3m=333333 33333=233333 33333 3333333 322R= 3333X=3333

Total 0.00 0.40 2.00 0.00 0.46 0.48 0.50 0.52 0.54 2.49 2.12 0.26 0.12 2.49

- Vals sca8led bV 1000000.0 10/26/1992 23:31

toIb

aso0.

FEDERAL REPUBLIC OF Nt6ERIAPROPOSED MULTISTATE ROMDS PROJECT It

CONSOLIDATED:(OTO,OSUN & FNl)Sury ACCUnts Cost 3Mry

MAIRA uS S Total.. ........................ ........................... _ -X Foreign BaseLocal Foreign Total Local Foreign Total Exchange Costs

1. IVESTPRNT COSTS. ..................

A. CIVIL ORS1. 010 STATE 247.90 460.39 708.30 13.7 25.58 39.35 65.00 41.382. OSCU STATE 236.82 439.80 676.62 13.16 24.43 37.s5 65.00 39.s3

Sub-Total 484.72 900.20 1384.92 26.93 50.01 76.94 65.00 80.92S. VEHICLE & EWIPUENT

1. OtO STATE 7.20 28.80 36.00 0.40 1.60 2.00 80.00 2.102. o010 STATE 7.20 28.80 36.00 0.40 1.60 2.00 80.00 2.10

.............................. ........................................................ *** ....................Sib-Total 14.40 57.60 72.00 0.80 3.20 4.00 80.00 4.21C. TECHNICAtL ASSISTANCE

1. 0O1 STATE 12.96 3.44 86.40 o.72 4.08 4.80 85.00 5.052. CJI STATE 14.42 81.70 96.12 0.80 4.5S4 5.34 85.00 5.623. FED.N1 N.OF WOWRS & HWJSE. 5.41 30.68 36.09 0.30 1.70 2.00 85.00 2.11

,................................................ ........................... ....................................... ..........Sib-Total 32.79 185.82 218.61 1.82 10.32 12.14 85.00 12.77 D. TRAINING

1. 010 STATE 3.60 14.40 18.00 0.20 0.80 1.00 80.00 1.052. oSuN STATE 3.60 14.40 18.00 0.20 0.80 1.00 80.00 1.05

.................................................... ,* ........................... ....................................... ..........Sib-Total 7.20 28.80 36.00 0.40 1.60 2.00 80.00 2.10

Totat BASELINE COSTS 539.11 1172.42 1711.53 29.95 65.13 95.06 68.50 100.00Physical contingencIes 53.91 117.24 171.15 3.00 6.51 9.51 68.50 10.00Prle Contifnencies 671.41 1436.33 2107.74 4.37 9.28 13.66 67.97 14.36

................... i;... .. -- ........................................... ......... ....................Total PROJECTS COSTS 1264.4 2 5.9 3i0.43 37.32 80.93 118.25 68.44 124.36

... ... -- ^---***------**-*** ............................................................. *.................. @X**Values Scaled by 1000000.0 - s101-91992 3:04

00IPdt0 16 (Z.

- 79 -

AMQ 4-7Page of 4

EERAL IEPBBLIC OF NWEA

,SECOND NMUTIrATl Ro -A SERQllK

Technical ssistance for Supervlsion of Road Work Cntat

Draft Terms of Rfrn

Badlqoud

1. Ihe Government of Nigeria has applied to the World Bank for a loan. A portion ofthe loan will be used by the SMOWT for an upgrading, rehabilitation and mainteanceprogram. Under the program, road contracts wIll be awarded by ICB on a slice and packagebasis. This will provide domestic contractors the opportuniy to participate. Geographicallydispersed work wIll be procured by LCB.

2. The main objective of the consultant services is to enhance the ability and capacity ofthe states to supervise road works under contract and ensure quality control and adherance totechnical specifications.

Scoe ofW

A. Duties and Responsibilities of the Consultant

3. The Consultant is to supervise the works and to approve the materials andworkmanship of the works. He is to do this in cooperation and consultation with the State.He shall have no authority to relieve the Contractor of any of his duties or obligations underthe Contract. He shall not order without consultation with the State any work entailingdelays or any extra payment by the State.

4. Accordingly, and in consultation with the State, the principal responsibilities of theEngineer shall be:

(a) to issue the order to commence to the Contractor;

(b) to authorize the. Contractor's subleting parts of the work;

(c) to explain and/or adjust ambiguities and/or discrepancies in the ContractDocuments;

(d) to provide assistance to the State in the settlement of disputes with theContractor;

(e) to approve the Contractor's working drawing and, if necessary, to issuefiurer drawings and/or to give instructions tu the Contractor;

- 80 -

Sex 4-7Page 2 of 4

(t) to approve data for the setting out of work;

(g) to approve or to disapprove the Contrator's superindence, key personneland/or construction program, land to be occupied by the Contractor, materialsand/or sources of materials;

(h) as required, to order speeial tests of materis and completed works andlorremove and eplac improper materils and/or work after prior conltatonwiti the State;

(1) to control and appraise Works progress, to orde the suspension of Works,and to authorize extension peiods for Works completion;

(J) to Issue variation orders, to evluate variations, to fix rates for unpWcedwork, to order daywork after obtaining prior approval of the State, and/or tomake recommendatons to the State regarding altemnatives;

(k) to issue interim certificates for payment to the Contractor and to certif workscompletion or parts thereof;

(1) to inspect the works during and/or after the Mintance Period and to issuethe Maintenance Certificate;

(im) to carry out all the Engineer's duties as specified in the Co n, within thelimitations specified above;

(n) to advise the State on all matters conerning claims from the Contractor andto make recommendations thereon, including the possible recourse toaitration;

(o) to insure that their representative and staff provide the State's counterpat staffwith the skills and knowledge needed to provide effective contract supervison future state projects;

(p) advising the State and carrying out work following the apped to arbitration orlitigation concering the Works; and

(q) any other specialist services by the Consultant or other specialists as may beagreed upon.

D. Dudes & Resnonhdbilltles of the Consultant's Rrgnteatlve & Sin

S. Ihe duties of the Consultant's Representative and staff are to supervise construeon ofte Works. They are to test or order to test and examine any materials to be uswed orworkmanship employed concerning the Works. lhey shall have no authority to relieve theContra of any of his duties or obligations undet the Contact. They shall not order anywork involving delay or any extra payment by the State nor to make any variation of, orln,Wors. They will transfer to local cutpart staff the skills and knowledge nede to

pride contract supervision on future projects.

- 81 -

An 4ZPage 3 of 4

6. The principal responsibilities of the Resident Engineer shall be as follows:

(a) to lnspect the performance of the Works concerning workmanship andcompliance with the Specifications and to order, supervise or perform tests onmaterials and/or work and to approve or disapprove the Contractors plant andequipment;

(b) to order, if required, the uncovering of completed work and/or to remove andreplace improper materials and/or work;

(c) to check systematically Works progress and to order the initiation of certainwork that I part of the Contract;

(d) to examine and attend the mesement of any work that is about to becovered up or put out of view before permanent work is placed thereon and/orto examine and attend the measurement of the completed Works;

(e) to check the Contractor's accounts, invoices, claims and other statementsconcering arithmetical error and compliance with the Contract, and ifreauired to correct thereof;

(t) to supervise the Contractor in all matters about safety and care of the Worksand if required to request from the Contractor the necessary ligs, guards,fiencing and watching;

(g) to direct the Contractor to carry out all such work or to do all such things theResident Engineer thinks may be necessary to avoid or to reduce the risk incase of an emergency affecting the safety of life or of the Works or ofadjoining property;

(O) to carry out such duties under the terms of the Contract as may from time totime be delegated in writing by the Consultant;

(i) to prepare as-built drawings for the complete Worms;

0) preparing reports or additional contract documents for consideration ofproposas for the carrying out of addidonal work

(k) arrying out work consequent upon any assignment of the Contract;

01 maintg a day-by-day project diary that sball record all events relevant toand that might impinge upon the Contract, requests f*om and orders given tothe Contractor, and any other information which may later be of assistance inresolving ueries that may arise about executing the Works;

(m) to insure urpat personnel receive the skills and knowledge needed toprovide contract supervision on future stae projects;

- 82 -Annex 47Page 4 of 4

(n) to identify the skills and knowledge that have been transferred to thecounterpart personnel; and

(o, to demonstrate through certification procedures that the counterpart personnelare qualified to provide effective contract supervision.

7. The Consultant shall furrish the State with a full list of all the responsibilities he willdelegate to the Consultant's Representative for Contract supervision in accordance with theAgreement.

8. All additional services will be authorized by the State at rates and under condidons tobe mutually agreed.

Regorts and Documents

9. The Consultant shall furnish to the State the following reports and documents in themnumber of copies stated:

(a) Progr Reort (10 copies). The Consultant shall submit monthly ProgressReports to the State. The reports shall include udnutes of site meetings withthe Contractor that the Consultant's Representative has convened. The reportsare to commence at the end of the month following the date of award of thecontract for construction. After the issue of the Completion Certificate, thesereports shall be submitted at quarterly intervals until the end of theMaintenance Period.

(b) C(2eton R 20 copies). The Consultant shall submit a completionreport at the time of final certification.

,Oualifications of the Consultant's Reprsetativ

10. The Resident Engineer is to be a well qualified highway engineer. This expert shouldhave at least ten years post-Qualification experience. Also, the expert should have five yearsof constuction management experlence. The Resident Engineer will need an assistant andsomeone with accounting experience. The assistant should be a highway engineer familiarwith construction quality control procedures and tests. The accountant should have experiencein monitoring construction projects and be able to document the flow of materiais and fuidsfor construction projects. It will be useful if the Consultant's Representative is familiar withthe FMWH(HSL) standard bidding documents and procurement procedures which will beused by State for contracting under the MSRP.

11. It is estimated that this consultancy will consist of about 80 staff-months during theproject implementation.

- 83 -

Annex 48Page I of 7

F1MDRAL REPUBC OF NIGERIA

SECOND lMULTUMTE RQADS PROJECT

Project Monitoring and Evaluation

Introduction

1. In the past there have frequently been problems and delays encountered duringimplementation of projects in Nigeria. The end results of many projects have also often notproduced the developmental or institutional impact which had been anticipated at projectcommencement. In an effort to rectify this situation, particular attention was focused duringpreparation of the MSRP II project on how such deficiencies might be overcome.

2. This annex briefly outlines the proposed approach to monitoring and evaluation ofMSRP II. It is based on monitoring progress during implementation towards achievement ofdevelopmental objectives. The approach known as the Disaggregated Effectiveness Evaluation(DEE) technique, is described in more detail in background Document No. 4 in project file(Monitoring and Evaluation, June 1992). This annex outlines the DEE technique, describesits application to MSRP II and presents sample DEE frameworks to illustrate the processesinvolved.

The DFE Technique - An overview

3. The DEE technique has been developed for the design, monitoring and evaluation ofprojects, programs and master plans and for the effectiveness evaluation of organisations inthe private and (especily) in the public sector. The DEE technique uses a systematicapproach to develop frameworks which link objectives, outputs and indicators. These, on anaid funded project or otherwise, can be used to assess the degree to which stateddevelopmental objectives are being achieved, either project or plan implementation, or interms of the functions of an organisation.

4. The DEE technique offers an analytical tool to assess how well an organisation isdoing in terms of achievement of its developmental objectives in different technical sectors ofits acivity. It also, at the same time, enables assessment of the organisational effectiveness ofthe different divisions in the organisation in terms of their expected contribution toachievement of those stated objectives. Thbrough this method the technical areas of anorganisation's activities, and :ts organisational effectiveness in achieving its objectives, can bemonitored and evaluated.

5. The technique is particularly appropriate for application to service sectors andsituations where outputs are difficult to define and measure through conventional monitoringtechniques. It can be applied in any situation where the stated objectives are known and itprovides a measure at any point in time of the degree of achievement attained with respect tothe objectives specified.

6. In a typical application, DEE frameworks (see figure below) are devised inconsultation with the client organisation to cover all the technical sectors to be evaluated.

- 84 -

Page 2 of 7

Each DEE framework constitutes a skeletal framework which links outputs and indicators in avery specific way with stated developmental objectives. lhe technique is aimed at achievnmore clarity in the definition of objectives, outputs and indicators at the project or plan designstage providing a simple and systematic means for monitoring and evaluation of the project orplan.

Project Subproject Component Output Indicator

TyPicaOFE ae wor Siructur

7. The technique consists of first establishing an overall objective for the project (orplan) and then breaking work to be undertaken into a number of sub projects. For each ofthese sub-projects, a developmentl objective is established. Components of improvement ineach sub-project are then selected such that they are directly derived from the sub-projectdevelopmenta objective. Each component Is then defined via a mber of outputs and eachoutput is defined via a number of easily verifiable indicators.

8. Through this hierarchical method it is oniy necessary to monitor the individualindicators and, since these are chosen and formulated to be easily verifiable, this is a

- 85 -

AnPage 3 of 7

reively straightforward task. The technique has been or Is now being used for project orplan design or monitoring on the following types of applications:

* Public health project (Egypt).* Water supply project (Kenya, Nepal).* Rural integrated development programme (Nicaragua).* Road projects (Peru, Philippines).* Forestry project (Kenya).* Forestry master plan (Nepal).* National road safety projects (Kenya, Ghana).* Development of county road safety plaps in 4 UK county councils

(viz. Noningbamshlre, Durham, South Glamorgan ad Clwyd).

Applcation of DEE Technique to MSRP I

9. As a means to illustrate the DEE Technique and its potential application formonitoring projects in Nigeria, it was agreed that some illustrative frameworks would bedevised of the type that could be used by the relevant State Authorities and by World Bankoffcials to track developmental progress during implementation.

10. Since the elements included in both Osun and Oyo States are broadly similar (with theexception that Osun State includes a maerials testing laboratory), the only red differencebetween the 2 states will be in the timing of activities and the actual length of roads to bemantained or rehabilitated in each State. It was therefore felt acceptable to develop a singleset of DEE frameworks based upon Oyo State in order to illustrate the process involved andthe types of indicators which could be considered for monitoring. Separate (but similar) DEE-fameworks can readily be devised for Osun State in due course so that that project can be

monitored independendy from the Oyo project.

11. Ihe development strategy agreed between the Nigerian government and the WorldBank and the list of project objectives indicated the key elements and issues which somehowhad to be incorporated into the developmental objectives. Similarly examinton of the projectdescription identified three of the major area where activities would need to be implemented.The fourth was derived on the basis of the description of the Roads Sector. This gave fourpotenti self contained "sub projects' which, between them, appeared to cover all the mainareas of activity implied by the stated objectives (see Figure 1).

12. Developmental objectives were then derived for the whole project and for the 4individual "sub projects". These developmental objectives were fonrulated in such a way thatthey encompassed all the key elements of the stated project objectives while providing aspecific focus for developing each DEE famework. These developmental objectives aregiven below.

(a) WholeProj MRM0Q=

Protection of exist assets and implementation of a more efficient costeffective and safe road network through selected road improvements,insttutonal strengthening and the development/implementation of an effectivelabour based system for rouine and periodic road mance in Oyo State.

- 86 -

Annex D4Page 4 of 7

(b) Sub-project 1: Road Improvement

Implemnentation of a road improvement programme to protect existing assetswhile minimising environmental and road safety disbenefits on the improvednetwork.

(c) Sub-prolect 2: Maintenance

The development and training of small scale domestic contractors andSMOWT staff in labour based and light equipment construction methods andgradual transfer of routine and periodic maintenance to the private sector inorder to improve signiflcantly the quality and sustainability of roadmaintenance activities.

(d) Sub-proJect 3: Road Safety and the Environment

SMOWT staff, trained In the appropriate techniques, planning and designingsafer, environmentally sound road improvt,aents and rehabilitation schemesand identifying and improving hazardous locations.

(e) Sub-project 4: Institutional Strenphening

Improvements of organisational arrangements, institutional capacity and costrecovery for better planning and maintenance of Oyo State road system and,in particular, to ensure sustainable maintenance of the road network.

13. In order to demonstrate how Objectives Achievement frameworks and indicators couldbe devised for the project a single sub-project was selected as an example. One of the mainobjectives of MSRP2-Oyo is to develop labour and light equipment based methods of roadmaintenance and rehabilitation and to gradually move from a force account maintenancesystem to a contract maintenance system. Hence the maintenance sub project was selected asthe illustrative example.

14. The monitoring and evaluation specialist, working with the labour based methods andmaintenance specialists, was able to devise a number of key indicators which, if achieved,would give a reasonable degree of confidence that the desired developmental impact hadoccurred. A DEE Framework was prepared reflecting discussions with the maintenancespecialists and key monitorable quantitative and qualitative indicators were derived so thatprogress could be tracked during implementation.

15. Figure 1 provides an overview of the whole MSRP-Oyo project and shows the 4 subprojects mentioned earlier. Only sub-project 2, Road Maintenance framework (see figure 2)has been developed down to indicator level as an illustration of the processes involved. Thispardcular framework was devised in close consultation with the maintenance specialists on theMission team but should only be regarded as indicative of the approach to be adopted.

16. Before this MSRP2-Oyo project can be monitored similar frameworks have to bedeveloped for the other three sub-projects and the Maintenrnce framework has to be fiurerrefined and edited. Weightings, indicators, targets etc., all have to be agreed with State

- 87 -

Aprex 44Page 5 of 7

officials. Ilis can be best done at the proposed Project Launch Workshop when all partiesand implementing agencies will participate in discussions about the project and on how best toensure trouble free implementation.

17. That forum would be the appropriate time and place to introduce all parties to the waythe project will be monitored and to get broad agreement on detailed indicators andweightings for use with DEE frameworks for Oyo and (in due course) for Osun.

Monitoring during implementation

18. A key element of design is in the selection and derivation of the monitorableindicators. These are derived in such away that it can be easy to answer with a "yes" or a"no" to the question "has this indicator been achieved?". If the answer is 'yes' then thatparticular indicator can be assumed to have been achieved 100%. If the answer is "no", itshould always be possible to estimate the degree of progress towards achievement of thatparticular indicator (eg. 10%, 50%, 70% etc.).

19. At any point during the course of the project, assessments can be made as to whatprogress, if any, has been made with respect to each indicator. These assessments can thenbe used along with the weightings ascribed at each hierarchal level to assess overall progresswithin sub-projects and by amalgamating sub-projects each project with respect toachievement of its developmental objectives. Comparison against precalculated achievementprofiles of anticipated progress enables assessment of whether the project is ahead, on orbehind schedule with respect to achievement of its developmental objectives.

m02~~~~~~~~~~~~~~~~~~~~~~f Ii -X

flile'i 5 2, 1! 1 1~~~~~~H

- 89 -


0tcAKOINr

O't lted broeloin of no. afd Ce o miatonc Staff ad eqsipet*OOiDt* 68hSinM of .. aseilable by Manth 0- nlacIng reetga svltal I to *et rai ac-uto tl vanth I

t I i tc tht e to be retained, cntracted end to bereSident by Mrt" 2

1eetletic amexasnt of in i- tinless 05 rowtiii Cihit"Wentn ntngcy wstOAdufind by-ei of _ ortiOlOSf IC 'e t Omth - nesting gloW forz ce O ll_ t Staffi ang od oipt reqtrents dt(nd tr Mont 4*eseW Staff rad mintahee

Se_tla"oiat ptan proepd NW appred by mwth SAdequate cagoneirn being paid to encourage rotirtSide

Itake ie by eoanth 4teptMKtation of _ tx VW atsye opratti as individuat Ccna toro an routinerd rtoya otcm SMItVnase bY M nth9

Rtetained staff fulty occwgied on Wrgciey wd rkeidjat routinwmintenance by math 6

suwplt saltes retired or moet reaSaidnt tie Of f paiveti) by manth 12

C- ntrectS to hel pro pa oymnt c leas Inctudd by math 6Caitrector pamn _ being Made within 28 days of intrif clotes by

Conercrttet odltost to - nth be ftir to _ntt contrateorsn Where edvencr pettnts not possibte. tetUSt requirinMg erladfAta paYct

Of takst coats to be inserted by mAts -d t 8th f oreg nb d tooet Cbnyerter to have precisely the so" caditlora

- ftetttntbt cnratoe otctrs *orif awl tenace "dstttrtit (4"ti'i'd' for Muoby cotnth 3ideatif ld * ~~ Contractors for periodic Maintenanceandrhbttto f"t/r"

reedst idnti led by month 3

Si- 2 l staff introduced to tabor based gethods en IL0 projects by

tMe 2 traineeS crfinfd as inetrwttorn by mtws 6coet_ et o trainiq eurts of (ttrm baed routine and periodic qrintte

oottretlg - ittenttet contratws prevard by tmaoth 6lajaffy trained it rettetMt ttbtir LtseW of tight guipM&Ait (of Aitch I tat for tCrjtnt,G atquiCrd Cy

NNW 44hot wornth 6At tost 3 mtat contractors traened on pricdic/rehbitiution coure"bymoth )

At t7ut lOOb undw contract Maintonance by mcth t2Aro4rd 600k5* twdw entrec feuds. eeatoetntnc by math 60

otottr corew eustt tv(dt that ~W Is atre, ttt *rtanisw rcIOrn ht pttr(dic 0. t,r0neACse SSiSbte for tf ee training as required by eath 24

t*a wenting thee

_ private t4lcncrtt being --- = Sinati wan m_atawnt eontractors tgivn pitot setiom by moth Sgiven ppartutuities ftr Contratrto beqng given Pitot sectiOn. of rtors to raintefin tby nth 6pratsIcia ttidnint via piltprobate MWrod

-Es ....... t....COndition of minteined roa brought ip to en acteptabeao Lent by .;Oreg smitIng effoctively f etoinca abst qgatity of weroreanttip ft.. sqttvsts y .

Ceteact "intendme i~Rb 1 titatfon and iteprovad trttds et In good cndition by math 12Maintewnce .prnIr warkt4t swsoafully an = Condition of *It other maintainable reoas being tept a en tstaable

UlOt rad tint by manth 2'.edtsution e0 the bet"tlg of 0eriodiC esinte . Wad rathsbtitationwiats smiting attention by ..........

Sacassary tots. vehictes and frlsdtvaeitabte* at ihort notice forroutine aid owegesy work by month S

amining Ml t mlatafa fargty reapats attended to In order to ainimise traff itc disrtetienstaff fully ossuptld on - Md safety ht_ard by Mqth t8_rtWito a to.tne - ehabidtitated ad i(posd project roads being Maintained in goadMIntRWOR On eaidAt keeds owdition yw .

tth r saintibteo roads befng kept In accotabte coodition by .Staffing teet eaomenurae with actut acrtstad by mnth 12

eto identifroed- . Conditlon surs being vdrtan at tent 6 menth interets by anth 6_n_ae ctivity n ' intmnt ativitie being prioritised erd iaptlgtad in accordance

with cendittien Survey findings by mnth 18

VWt ae to pln. bpt e aptonin fi bsd ecoditin surveys ad faAs fron esistingam gaio mt Into ee i towea activities by math 11laptovonoatsj Adequeta aidt cinty release of fisid occurring bay ajach 3

Neiatasad conrast tender systee working smothty by emath IS

tinrasing Mam of etI IO d of fd netrit Wed tontr ett MnteWc by Mnth 12contratorS wing Lebo 15 of mintainabte nspsrb wAdr contract _intenonoe by Moth 60

twd med

nmetAia4r4 Ot asiatme contestbe ing-.--- Sur tanders being held for sainteansce contracts by manth 12simide ane a soiitfve 6- Apatt ft. singte ma aid pO1t cotracts, atl goatractsrs to ha.tgode Sas atheys gS_ through e tadr proces fora opantoct by math11 24

for _ewE iam e VW tS? utf being uEd onty f*r enmPsenies and reeldlt eintainlageactvity In V -- ; roartrictad to _egeit s - O fIt tf tet$ cmans:,-l with srbk tedaid rMiamt trds

laineatnauca cotactor smtpvialon VSySe astalbtishad by......le e SiSS ecacty NW -saprvsytf s.. traesidbss by.e~t_usa to aipatvise . . overeers prvided with swtrccteis by mtnth 6

tract miftawu section tn prosided sith cytcs by mtoth 4

-btter supavilen of Accuat repstig st on -cntrsct tap-t_ tion aid force a atmustam,e activity an -- tinvity rtin by..........gait reeds SeRads being minteinad to eaqsied stadardsa by......

Sno dswe m ad traing of et_tt mate d_Iac atar aded staffin t1st_ tt tad tIght egaiw c5tftstion _to d grSWe troard ratstle tiud aedle to te prisva tser In ador to ifbeev

o i i f t dl ti ate ity of itoe miat _c ativities.

ViCeS 2: liroejct at iItu t(J/Z t Ot'e

- 90 -

Anne4xPae1 of[ 10

EDERAL REPUBLICD NTGJ

SECOND MULTSIST1X JRADS ECT0J

I. IMPLED1A3IONSCHDL

SMOWi (Oyo & Osun)

Acyit1. Appointment of local consultants (finm local funds) for designing two August 15,roads in each state (Done) 1992

2. Submission of Training Plans to the Bank for review and agreement January 31,1993

3. Appointment of State Coordinating Consultants on tenns andconditiens agreeable to the Bank

(a) Submission of request for proposals (RFP) to Bank forreview and clearance (comprising LOI, short list of January 15,Consultants, TOR and draft contract) 1993

(b) Iitaon for P ls .......... . February 15,1993

(c) Appointment of Consultants ..................... June 30, 1993

4. Letter of commitment to implement an agreed plan of action to January 31,adjust road user charges to recover recurrent maintenance costs 1993

5. Opening of Special Account (in Dollars) and Project Account (in May 31,Naira) with an initial deposit of at least $280,000 equivalent (Naira) in a 1993commercial bank

6. Appointment of consultants (Bank financed) for designing first andsecond year road projects June 15, 1993

7. Appointment of consultants (Bank financed) for designing 3rd, 4th and5th year road projects June 15, 1994

Annex 4-9Page2 of 1Q

8. Civil Works in Para above:

(a) Finaibidsing idoments . do m nt................... Mayl5,1993

(b) Ivitebids .......................... June 15, 1993

(c) Award Contacts .......................... November15, 1993

9. Civil Works in Para. 6 above:

(a) Finalise bidding documents ................... April15,1994

(b) Invite bids .......................... May 15, 1994

(c) Award Contracts .......................... October 15,1994

10. Works in Para. 7 above:

(a) Finalisebiddingdocuments ..................... April15,1995

0b) Invite bids ........................... May 15, 1995

(c) A-Awd Contracts .......................... October 15,1995

11. Procrement of vehicles and equipment ([CB):

(i) Preparation of specifications and schedule of January 15,requirements .1993

(ii) Preparation of draft bidding documents .February 15,1993

(iii) Clear draft bidding documents with theBank .... March 15,1993

(iv) Invitation for bids ............. ...... May 15, 1993

(v) Award Contracts August 16,1993

- 92 -

12. Labor based mainteace by contract component;

(a) Assignment of two persons for taining wi ILO/NDE Septemberproject in Nigeria (Done) 30, 1992

(b) Identficationof local contactors to be trained ....... June 15, 1993

(c) Commence taining of con actors ..... .......... July 1S, 1993

13. Appointment of xtenal Auditon at the State level ......... May 15, 1993

14. Submission of annual audit reports s tartng.......... December1993

15. Siging of subsidiary loan agreement between the stat and FON June 15, 1993

16. Obtain legal opinion of FON on the Credit Agreement .July 31, 1993

17. Consultants:

(a) Appointment of Consultants for MSRP m.......... February 15,1993

(b) Appointment of consultants for MSRP IV .......... September15, 1993

-. 93 -

IL D?TS 0E ROE

A. ONO SQA2

Project Zlemet _ ___Pot Year

1993 1994 19- 1996 1997 18 em

Loan Timiq.S4 eti veoa 5/93 8g93 6/98

BWAward 0 01.S 3.6 3.8 3.6 12.5(Lotl)

-eyin4jaye 'x xx xrxcx X

15 3.1 3.3 3.2 11.1 (Lot 2)koyi-Ile-Ahoro Dada-dege m1c mx mmx 22

1.0 2.0 3.0 (Lot3)lbadJn JnDagbolu4LBdr. m Ixx Ix"xm

1.0 2.1 2.1 1.0 6.2 (Lot4)-Igaa-boora lx= mXXiX xmamOi xxx

0.5 1.0 1.0 0S 3.0 (LotS)Undefined 712 121002 XXXmwX xxm

Pf:

Bid/Award 0 0 0 0 0 0 0 0

badan (Cesatl)-badn (Weal 0.7 0.9 1.0 0.9 5 4.0 (4 LAts)Ibadan (CcowaD-bodan In. (Be) xxxi um mx 1x x mawxxicx xxxIbadan (Gaft-bdan Ote)

0.1 0.2 0.3 (1 Lo)Oyo (C ra-Ah 4nmin xx x

.3 .7 .8 .2 2.0 (3 Low)Budo lyayoyM..XIshi mxxx xx,oxx mmx M

.8 .8 .8 .8 .5 3.7(12Lots)narel Rade RehablIato mm XmXx xmxxi mxxxxmx (1.2 VDA)

(2.5 MMS)

glbw. ~~~~~~~~~~~~~~~~~~~~~~~~~~~3.2 (Other).7 .7 .7 .7 .4 (0.6 IDA)

Road MainUnane by Conant xxxxx xxox mx (2.6 OMSL)

_ 94 -

5 of10

Prqeat Elment Poct Year

1993 199S4 9 1996 1998 RemOs

Bid/Award 0 0.8 .8 .8 2.4 (1.9 ICE)

Vehicles, Light Equi_ent for rebab. of xxxmcx mmc xxx (0.5 Othr)gravel roads, hand tools and office, laband survey equipment, oft.

.2 .5 .6 .6 .5 .2 2.6Project Tnplementaon xxxix xixxxix xix)s xxuxm mxxxix xx

5 1.0 1.0 .5 .3 3.3Capaity Building xxxi xaax xiaux xxixx x

.1 .2 .3 .3 .3 .1 1.3t TrailiiDz x xmxxx mmx xxoaox It. aacI mmx xx

Total (Oyo State) 2.3 9.8 14.8 17.5 10.8 3.4 58.6

V 95-

Annex sPas 6 of 10

.~ ~ ~ ~ ~ U . . PtYea

ProJet YewrProect Element - - Remark_____________________________________ 1993 1994 l99S 19 1997 1998 __ marks

Loan Timing:Sign/BfecteClo, 00 - - o

.4 1.0 1.0 1.0 1.0 4.4 (Lot 1)Oahogbo By-Pa. mx xm mx mx=

Ada-bokmnIgbajo-Imea-Re Ondo StAdr. .7 2.0 2.0 2.0 2.0 8.7 (o 2)Osogbo-wD lnel xxx xm mxo xxx x

~Jebu-J.sa-flare Otan-DeI1are-lboak .7 1.S 1S 1.S .8 6.0 (Lot 3)EseaokoEssodo xxxx mx xxxx xxx xIbokun-Oita Ido Miasi

EjWoAia-Ed .9 1.9 1.9 1.9 1.0 7.6 (Lot 4)ftigbo-Aa-P. xxmx mwx Xx m

Kuta-Ede

1.7 1.7 1.6 S.0 (Lot 5)Apomo-.Anri.Owu.Ori Owua m xxx

.7 1S 1S 3.7(Lot6)Undefined xxix xxm xm

Packaep:

Asipa-EdunabonRua (SUJ)4foVWnj .5 1.0 1.0 1.0 .4 3.9 (S Lots)niaa-4gboy*4Woen xxx xX m xx=x ma

Gravel Road. Rehabition .8 .8 .8 .8 S 3.7(12 Lot)xxsx xxix mx xXix xx (1.6 IDA)

(2.1 GOSL)

.7 0.7 (1 Lot)Matrials Lob. MIwt

.7 .7 .7 .7 .4 3.2 (Other)Road Maintanae and Spot provemt 0x xxx xxix mx (.6 IDA)

_____________________________ _ ;(2.6 GOSL)

.-96 -Amex4-

DUg 7 g£ 10

Projec YearProject lt_ 1993 1994_ 1996 17 1998 Rma*b

Uf: Vebicles, Ilght equipent fr rehabilioaoo of .8 .8 .8 2.4 (1.9 LCB)gavel roads, hand tools and office, lab and suwy x(05 Oe)aquipmen, etc.

Tochale AWsww

.2 5 .6 .6 S .2 2.6pretl uple_ mwm tation m x =m

.S 1.0 1.0 1.0 0.4 3.9Capacit Dlug emII IIaam I xxaxmm

.1 .2 a3 .3 .3 .1 1.3Tz~nina x2x xxxa masm xm XI=

Total (Osun S) 1.9 9.8 14.0 14.8 13.2 3.4 S7.1

; . . . , -

C.-

.2 .2 0.4Project I=inpmetatio xwaax mo

.6 .7 .7 2.0Capaity Boa"in xx ax

0.1 0.0 0.1

Sub-total (FMWBD .6 .7 1.0 .2 2

GRAND TOTAL ftojw) 4.2 20.2 29.5 333 24.2 6.8 118.2

IDA FDNANCJNO (Anna by PY) 7.5 16.8 20.4 19.6 17 8.0 8I.0

_ 97 -

Pago o

]LMONlORABLE TARGM AM PRFORBMANCE ENDICATORS

A: ,0 Y.OSI&2

At Dec Doe Dec Dft Dec Al pjteeMSab_how uns Sbart 93 94 9 _ 96 7 c_m k

Doesi SUdie * 0 30 sO 100 100

Sal audit sytm etablsHd 0 O 100 1o0

DosgM vieed/sa audted 0 O 30 80 100 100

Egined desiSas + bid documents comd lmn 0 200 350 381 381

Civi Wak Contas awardd km 0 45 lSO 250 350 381 381

Kras. of roads in maitable condiion km 3W 300 400 Soo 600 750 no

OpeAl deme (sgns, makng, el:.) instaed km 100 200 400 500 60a 750 750

tA cyMW o dMiGiera mons ind_y % 20 20 40 80 100 l1O 100

Km. undwe conacto maintenance km 0 100 250 350 SW0 700 700

% of ndwo* unde forcaccoun mainte m % 100 90 7S 65 SO 30 30

Supeevi tff in maint nano odion no 34 27 20 20 20 20 lo

Labore In maina I _ division no 638 S10 383 255 200 200 200

Labor/h cquipmet be contato tlvAd no 0 0 10 1S 1S

Siogl mn coQ hnt empbyd so 0 30 80 120 180 250 250

pdl inst. w it h labor/ight equip. based mbods km 0 0 100 200 300 450 450

Sham of fomawcountintotAlmitonwe % 100 90 75 65 50 30 30

Localcapaciy to adminst maL contra s 10 40 90 100 100

Loal cpaoity to eiuivey supeie maitane 10 20 50 75 100 100 100

Biddoeueom S . 2.4 2.4

Contrct awared $ 2.4 2.4

Vad p whas S 0.8 0.8

Dquipmant/splispsr purched S 1.6 1.6

Lol staff taind (dosic) mm 0 so 1o0 150 200 250 250

alaasftaff atvd (ovase) mm 0 20 40 60 s0 100 100

Capc0y to managdomperviseo confta mal sysm 10 40 90 1to -- 1

-98 - Anae%492

bag 9of l

At Da Da Da Dec D At ProdeceM xoutorb item Uni St 3 94 95 96 n Capla

.. , ,, .l - - -,. ,,,._......Cost rwovery from road sem (recumet malL) % 56 100 100 100 1t0 100 100

Msitenano budget allocation as % of eod % 30 60 100 100 100 100 100

Quartedy progrs Repors no 0 2 6 10 14 18 18

Fil

Disbu zemetag achivd (cuuative) Sm 0 1.8 8.5 19.0 31.3 39.2 41.9

Counterpa fiud aget abieved (cumultive equW.) Sm 0 0.7 3.4 7.6 12.5 15.6 16.7

STAC Cnsukunbt mm 0 40 120 200 240 250 250

Deig + Supervisio Coasukant mm 0 30 110 160 180 200 200

Loca Con_ _a_ ___20 200 240 250 __0

B: Q.1I

Road lmnroveen

Daign Studies % 0 30 80 100 100

Safety audit system estabshed % 0 100 100

Design mviewed/safidy audited % 0 30 80 100 100

Engineering desigs + bid domaet compkletd km 0 55 182 318 377 377

Civil Works Contas awarded hn 0 41 136 228 328 377 377

Kms. of roads m maintainable condtion km 200 200 300 400 500 650 650

Opentonal elements (sips, mardng, ow.) inled kn 100 1S0 300 400 500 650 650

Loal capackyto adm;n;s oontacs indepedey % 20 20 40 80 100 100 100

Miitaaem (Sven)

Kms. under contract Maintenanc km 0 1OO 250 350 SOO 700 700

% of neworkunderforoaccount maneenane o % 100 90 75 65 So sO 30

Supersory staff in maitenanec davision no 16 12 10 6 4 4 4

Labourers in mainteane diviio no 1ff 150 100 75 50 50 50

Laborigh equipment basd _onco tained no 0 0 10 15 1S

Single mam conact employed no 0 30 80 120 180 250 250

Periodic Mat laboig equip. based methods km 0 0 50 LO 250 350 350

Share of force accountintal nn manoost % 100 90 75 65 SO 30 30

Lca capacity to adAnister mai ance contracts o1 40 90 1OO 1OO

Lcalcapacity to effctvely supervisc m _aien 5 10 20 50 75 100 100 100

VEadoVSvar

Bid docucens completed S O 2.4 2.4

Contracts awardd S 0 2.4 2.4

TE~~~ -I F01 *t t

I~~~~I -t U N1I I V

_ I I ,

o~~~~~ ~ ~ C o 0

0 Sog <S Ag iioXa

.. t t .. _ s t

I-oo Ywg B gi {ooOg * " oW o W$

! I ! - --- o_ _ _ Iw I B W w°tA fi"

- 100 -

FEtDRXA REPUBLIC Or NIGERIA Annex 4-10Page 1 of 2

SECOND uLYiS?ZAYN ROADS PROJECT

DZ8D]38 UNNW sCeEUgLE

(u8$ MILLION)

STANDARD)"PRAISAL KsTINA?XS RZEU.R P1xaLx

ANUAL DI8NRSBSUE CUR. DZSB3USXUBM AFRICA EaIoNAT END QUARTER AT END QUARTER RANSVPORTA12:'N

QUARTER ENDING I V8S I uS (I)

FISCAL YEAR 1994First Quarter Sep 93 2 1.88 2 1.88Second Quarter Dec 93 2 1.88 4 3.75 aThird Quarter Mar 94 2 1.68 7 5.63Fourth Quarter Jun 94 2 1.68 9 7.50 3

FISCAL YEAR 199SFirst Quarter Sep 94 5 4.20 14 11.70Second Quarter Dec 94 S 4.20 19 15.90 10Third Quarter Mar 9S 5 4.20 24 20.10Fourth Quarter Jun 95 5 4.20 29 24.30 18

rISCAL YEAR 1996First Quarter Sep 95 6 5.10 35 29.40Second Quarter Dec 95 6 5.10 41 34.50 30Third Quarter Mar 96 6 S.10 47 39.60Fourth Quarter Jun 96 6 5.10 53 44.70 42

FIsCA.L YEAR 1997First Quarter sep 96 6 4.90 58 49.60Second Quarter Dec 96 6 4.90 64 54.50 54Third Quarter Mar 97 6 4.90 70 59.40Fourth Quarter Jun 97 6 4.90 76 64.30 62

FISCAL. YaR 1996First Quarter Sep 97 4 3.18 79 67.48Second Quarter Dec 97 4 3.18 83 70.65 74Third Quarter Mar 98 4 3.18 87 73.82Fourth Quarter Jun 98 4 3.18 91 77.00 82

FISCAL YEAR 1999First Quarter Sep 98 2 2.00 93 79.00Second Quarter Dec 98 2 2.00 95 81.00 a6Third Quarter Mar 99 2 2.00 98 83.00Fourth Quarter Jun 99 2 2.00 100 65.00 94

FIsCAL YEAR 2000First Quarter Sep 2000 - - - 98second Quarter Dec 2000 - - _ _Third Quarter Mar 2000 - - _ _ 100

-0

E "

80 sWPSw3 IVS . (B VM) ,odsuAeL .....

IUAsOJddV 4jpsJ WOJ~ SJSJUN

O£ 8Z 9Z bZ ZZ OZ 81 91 bl Zl. Ol 8 9 V 0

................................. ........................................................................................................ ...... . ...................... ................. w .. :':._O Z

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~~~~~........... ..........I......... ................... ...................... .............. .............I..........;. ,.. X _ 0 9

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MzPGA3 O %)

eq ;ouosinqsiCoa.3...6'J 43 'PU 00110efOJd speoU 89jesgfljn puooeS

- 102 -

AnnexA1 1Page 1 of 5

FEDRIWAL REPUBLIC OF NIGEQ IA

Q&MD EIAiTEROADSUQJE

Eovim lu al Assessmnt Summaa

1. State roads in Nigeria handled 15 million vehicles/km/day in 1988 or 25 percent ofthe flow of the federal roads system. State roads are of primary Importance as the link forintra-state commerce and trade between seats of local governments and as the backbone of thesecondary collector-distributor road system. Many of the roads are In vary bad condition andin sgificant need of rehabilitation and routine maintenance.

2. The main objective of the proposed State Roads Project is to support a five year StateRoads rehabilitation program in selected states, including a feasible road upgrading,rbilitation, and mainenance program; and an institutional development program includingtraing. Ihe FMWH will coordinate all the design, rehabilitation, and inaintenance activitiesof the partcipaJng states.

3. An environmental reconnaimance (assessment) of the proposed multi states roadsproject (MSRP) was carded out in May/June 1990 in cooperation with the Nigerian FederalEnvironmental Protection Agency (FEPA) and the Pederal Ministry of Works and Housing,MWH). As a result of the findings of this reconnaissance, the project was classified as

Category B.

T Environmental-Reoonnasanoe

4. The Terms of Referepee for the environmental study were:

(a) to identify environmental issues which relate to road rehabilitation in theparticipating states of Nigeria at generic and specific levels, while providingdefinition of those issues to clearly illustrate the type and scope of issueswhich should be addressed during project implementation;

(b) to identify potenti adverse ecological changes which are normally associatedwith road ma_itenace in general and, specifically, within the participaingstates;

(c) to prepare recommendations for environmental studies which would providenecessary information to road agencies to ensure the environmental soundnessof the design and techniques employed in state road programs, andrecommend measures which would mitigate potenially adverse impacts ofroad maintenance, rehabilitation and upgrading practices; and

- 103 -


(d) to assist government agencies in establishing environmental assessmentpractices which could be applied to all road components of the federal roadssystem.

5. The states selected for participation in the Multi State Roads Project have differentenvironmental conditions. In general, road construction projects - including the reconstructionor rehabilitation of roads - have local environmental impacts, positive or negative. The mostcommon negative impacts include soil erosion due to improper designs of embankments orside drains; scouring of the landscape due to the opening of borrow pits; and destruction ofvegetation due to clearing of right-of-ways. Positive environmentl impacts may accrue to thelocal 1apulation living along the roads, in dhe form of less road accidents, better agriculuralmarketing possibilities, and others. Adverse impacts due to the construction of new roadr arenormally much more severe, and could include disturbing fiagle ecosystems or opening upareas of natur ' resources to exploitation or unplanned population movcnent. Examples ofthis include placing roads through wildlife areas or forest reserves, which increases thechances of poaching or over-exploitation of timber. New road construction can also createland-tenure system stress, as roads through areas can increase market opportmities and,therefore, the value of land. Since no new roads will be constructed by this project,environmenal conct.ns associated with new road construction are not relevant to this project.Neither will the project cause any resettement of people.

6. In the case of road rehabilitation works, as in the MSRP case, the enviroamentalimpacts tend to be more limited, local and direct, and will result more from constructionactivities or improper design. Based on secondary research and limited field trips, thefollowing impact are expected:

(a) potential increase of gully erosion in all states, but especially in AnambraStaw, due to the improper placement of state roads and the lack of designprocedures for adequately distributing runoff;

(b) local and temporary reductions in air quality due to emissions from bitumenprocessing plants;

(c) soil erosion from side drains and improperly reseeded embankmens; and

(d) environmental and health problems associated with the improper restoration ofgravel borrow pits.

7. Since the road alignments of most roads in the project are expected to remainunchanged, the secondary impacts of the MSRP are fairly benign. The followingrecommendations were made to ameliorate the potent adverse environmeal impacts of theMSRP:

(a) each road to be rehabilitated should be surveyed by the appropriate agency ineach state to determine whether a separate environmental analysis isnecessary;

- 104 -

Anex 11Page 3 of S

(b) the FEPA should develap ronmental assessment (EA) guidelines withpaticular rfrence to road constuction and rehabilitation works, and shoulduse the MSRP as a case study for the preparadon of EAs on roadtehabilitation pojecs; and

(c) the case study should identitr appropriate or innovative design procedures fordispersing water runoff for roads in all of the states, but with particularemphasis on roads being rehabilitated in Anambra State.

Envi_anu Inmu

8. Road rehabilitation and the continued mainten ce of these roads may have eitherpositive or negative direct and secondary impacts, depending on the former condition of theroad Q.e., its use and the accessibility of the community to markets) and the openedopporties to improved health and other soca services. Rilitating a feeder road froma foot path to an all-aonal road opeig new markets and socia services will have apositive direct e mental impact due to opening up of new land-use opporunides for theom nity at the end of the road.

9. In the case of the MSRP, the main impacts will probably result from the direct effectsof rehabilitation activities on the immediate environment. Ihe severity of the impacts wildepend on the type of rehabilitation activity, such as bituminous resealing, asphalt overlay, orregraveling, and the amount of clearing associated with this resurfacing. Ihe extent ofreadigmnt and change in the road gradient will also determine the extent to which the directnvironment will be affected, especialy with respect to soil erosion.

10. The eAviromental impacts of rehabilitating state roads varies from state to state. Asevidenced in Kaduna State, soil erosion has been exacbated due to inadequate design ofrunoff drains and culverts. Additionaly, improper revegetation of embankments on bridgeabtments and gravel borrow pits leads to increased water and wind erosion. In the case ofOsun and Oyo states, it is expected that proper enginering designs of surface water drainswill reduce erosion and sedimentation problems along the profile of the roads.

11. Borrow pits used for gravel base and sub-base material are not always restoredprperly. With federal highways, the pits may be levelled, but they do not appear to berevegetated. In livestock production areas, local poplaion often request that these pits beleft open for watering livesto lhis may be an acceptable use, but only if they areprotected from livestock damage and soil erosion, someting which is presentdy not the case.In addition, these pits provide breeding habitat for mosquitos and snail hosts of bilharzia

12. In certain states, like Anambra and Imo, gully erosion is severe and caused by, orex 1-1 sw 1by, road constucdon. However, there are other reasons for the guUy erosion

that originate from improper land-ue activities and land clearing. From inteviews withconsultants involved in erosion control projects, it aopears that the problems are created bythe inadequat provision of drage facilities, especily crossoad drains. This leads tosUious damage of roads and the incrse in erosion in the vicinity of the roads.

- 105 -

Page 4 of 5

13. Specifications for the desi ad construcdon of roads, it appears, do not necessarilycosider proper stabilzation of subsoil nmteri for crsing wetand areas.

14. Jn most cases, Indiret environmental hmpacts of road rehabflitation works willprobaly not occur, sic the road aligame and gradients are not being changed. In certincas, as in the KaolKaduna road, marks have developed along the road when tl a hasbeen a change in alignment. lhis should be expected especially if the old alignment passesthrough a settlement Iherefore, the selecdon of the final road sites for each state is veryimorant.

15. Road rehabilitation is supervised and inspected differently in each state. In somestat, te staff exist to inpect and supervise all of the reconstruction work. In other states,the State Ministries of Works and Transport (SMOWs) must hire consulting firms to superviseand inspect all of the rehilitation work. In both cases, conwtractors should be required toreseed embankments and restore gravel pits.

16. The primary respomibility for environmental protection in Nigeia rests with theFEPA. Specificaly, FEPA is mandated to -...have responsibility for the protction anddevelopment of the envonment in general and envronmental technology, including initiatonof policy in relation to v i research and technology..." In relatiLz to theassesmn of Ivimnet impacts of development project, FEPA is also mandated to:

(a) develop, utilize, cooriate, and share environmental monitoring programn,promote environmental research, collect basic data on chemical, physical, andbiological effects of various activities on the environment, and engage in other

y related activitie as appropriate;

(b) establish envioneal criteda, guidelines, specifications, or standards for theprotection of the nation's air and inter-state waters as may be necessay toprotect the hedth and welfare of the population from environmentaldegradation;

(c) establish procedus and guidelines for industrial or agricultural activities inorder to minimize damage to the enviomnt from such activities; and

(d) providing a progm of tecnical assistance to bodies (public or private)concerning implnt of environmental criteria, guidelines, regulations,and s ds, and monitor the enforcement of these regulations andstandards.

17. To date, FEPA has ocentd on developing its central and regional offices, anddeveloping ewpertise in specific areas. In the near fitue, FEPA will be located in Abuja withzona offices in six regons. Ihese include the five already established at Kano, Lagos,Kadun, Port-Harcou and Benin City. The other will be at Ma . FEPA views itsmadate maiy as quantfying and reducing pollution from direct water pollution sources.

The backwr and experience of the staff at the agency reflect more of the chemical

- 106 -

Annex4Page 5 of 5

engineering and environmental engineering perspective than that of environmental assessmentand the development of plans to mitigate the adverse impacts of road rehabilitation and/orreconstruction. However, IEPA has a strong interest in developing the guidelines,procedures, and staff to review and evaluate environmentl assessments on infrastructre,engineering, and development projects.

Mitigation Plan

18. FEPA will provide FMWH with the broad enviromnental guidelines applicable to theproject. These guidelines will also be agreed with the Bank. However the final responsibilityfor the implementation of EAs lies with each participating state. ITe SMOWs would beresponsible for: (a) environmental screening and monitoring of their progrms; and(b) conducting, with the use of local consultants, ElAs of sensitive road links.

19. Since neither FEPA, nor the respective SMOWs have the in-house capabilities atpresent to conduct EAs, the EAs will be conducted by consultants working under terms ofreferences agreed with FEPA and the Bank. The consultants should be hired by eachparticipating state under the framework of the project. Previous environmental workperformed by Nigerian consultancy organizations for Bank projects have demonstrated anadequate EA capacity in the private sector.

20. Ihe First Multi-State Roads Project will facilitate the establishment of anEnvironmental Assessment and Monitoring Unit, (EAMU) in the FMWH. This unit willwork directly with FEPA and the SMOWs in the preparation of terms of references for FlAs,selection of consultants, approval of EIAs, supervision of mitigation programs, and regularmonitoring of impacts caused by the projects.

21. The local population living along the roads to be rehabilitated must be kept informedthrough public meetings that would also serve as suitable forums for consultation onenvironmental impacts and the need for local community measures.

- 107 -

Page I of 2

IRDERAL REEl)LIC OK NIGERIA

MU=S NMULllSATE- ROADS IPROEC

SupBesoan,

Ithe IDA input into the table below is In addition to regula needs for the review ofprogress reports, procuement actions, correspondence, etc., esmated to require 12 staffweeks per year for the first t project years, and 8 per year thereafter.

Approximate Activity Expected Skill Staff WeeksDates of Input Requirements

(mo/yr) l

9193 Supervision Mission Engineer, Economist, 10(Project Lamch) Inst}itional Specialist,

Procurement DevelopmentSpecialist, Disbursements

1/94 Supervision Mission Engineer, Financial 8with special Analyst, Institutional andemphasis on Trainig Specialist,technical assistac Traffic and Safety

l ____ and training Engimeer

5/94 Supervision Mission EngIeer, 12Economis/IsittonalSpecialist, Prcuremen,Disbursemet,

_ _ _ _ _ _ _ _ _ _ _ _ ~~Environment_ _ _

8/94 Supervision Mission Engineer, Financial 10with special Analyst, Insthtuonal andemphasis on Training Specialistsupervision of works

12/94 Supervision Mission Engieer, Financial 7Analyst, InsttutionalSpecialist

6/9S Supervision Mission Engineer, 7EconomitnsiuonasSpecialist, Analyst,

l ___ ____ ___ _ __ ____ ___ ____ _ E nironm ent

- 108 -

Page 2 of 2

Approxima Activity Epcd Skill Staff WeekDates of InRa

(m o /yr _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

9195 Supervisio Mbssi Engiee, Financia 7Analyst, nsitona and

l__________ .___________ _ . .T a in n Sp ilist12/95 to 98 Supervision Mission Engineer, Pinancial 7

Analyst, sdtional andl _ _ _ _ _ ,__ _ _ _ _ Tr in n S pe ias _ _ _ _

6/96 Supvision Mison Engineer, In onal and 9and mid-term reviw Tning Specit,

Eniron AlySt

6197 to 99 SupetvisIn Mision Engineer, Economist, 7Instuton and Trnn

_ _ _ _ _ _ _ _ _ _ _ _ _ S peciait_ _ _

9/99 SWpervision and Engie, Fincial 8PCR prqmaeon Analyst, Institutional and

pp t E -... ._ Training Speciu j

- 109 -

Anex51Page 1 of 11

FEERAL, REPUBIIC DE NLGIR=SECOND MULTAU ROADS PRUOJ

Econoric AndysisGeneral

1. From an economic point of view, the main objectives of the physical components ofMSRP's road imptovement program are to ease the road transport capacity, reducetransport costs and ptect past Investments in the highway network. lhe purpose of theeconomic analyses is to detrmine the appropriate design, tming and the works to beundertaken on each road. The work on economic analyses, summaized below, wasconducted by Consultant (DF) financed under a Japanese Grant Agreement as part of thepreparatory studies undertaken in the participating states to develop a five-year program ofpriority road works in each state and to identify ffnancial and ins"tional requirements forcarying out the program. A copy of their report 1/ is included in the project files.

2. Ihe Consultants used the World Bank's Highway Design and Mantenance Model(HDM HI) for evaluation of alternative investments on each of the road sections in the stateroads network. The model eentally simula the total life cycle conditions and costs oneach road section to provide the economic decision citeria for multiple road maint ce andrehabilitation alteratives.

3. Benefits were evaluated on a 'with and without investmentW basis, derived essentiallyfrom savings in vehicle opering costs, but the impact of variations in the costs of road

m-ntenance was also included. Evaluation was based on the net present value (NPV) of allcosts and benefits and the economic rates of retu (ERR) of the proposed works.Prioritzation and phasing of individual road projects was done on the basis of the ERR.

4. Alternatives for demining the ext of works ranged from minimal routinemainenance on the existin roads to resurfacing and complete reconstruction of the roadpavement. Ihe depth to which each alternative was studied was related to its likelihood ofbeing chosen as the optimal solution Each component of the most promising alternative (i.e.strengthening, reabilitation, upgrading, improvement of alignment, new construction, etc.)was, whenever technically meaningful, stdied seaely. he economic rate of retrn wascomputed separately for each road section which was then selected for implementation only ifthe return was at least 12% per annum.

1V TRDF, Multi State Roads Project (MSRP) Praration, Draft Final Report, June, 1992.

- 110 -

Am LI1Pae 2 of X1

Basic Dat

5. Basic data required for input to the H1DM model was collected by the Consultantsduring prepartory stdies. This comprised, inter alia, network inventry and pavementsurveys to obtain for each road link, the geometric char cs, pavement condition andstruct strength, subgrade strength, traffic volumes and vehicle distibion, unit cost ofmaintenance operations, and vehicle fleet characteristics and unit operating costs. Tables 1through 4 give a summary of representative data on road link char tics, unit matenacecosts, vehicle fleet cdacteristics and unit costs, and maiteace alternatives evaluated. Fora more detailed description of the input data see Consultants' report on file.

6. Costs were considered both in financial and economic terms (after adjusig for taxes,duties and subsidies, etc.). Benefits to generated traffic, where applicable, were computed onthe basis of 50% of savings in unit vehicle operatng cost (VOC). Traffic projections over theeconomic life of a road improvement were based on a uniform growth rate of 3% per anm.

7. Table 5 gives a summary of the average vehicle operating costs for diferent vehicleclasses obtained on roads vaig In condition from good to very poor. As seen from thetable, weighted average savings in VOC resulting from improvements in the road conditionrange from US Cents 2.8 to 12.3 per veh-km depending on the initial condition of the road.

8. Tables 6 and 7 give a summary of the ERR of selected road improvements in Oyo andOsun states respecdvely, to be implemented under the project. The minim desirable ERRis taken as 12 percent. As indicated, the evauation and selection of some gravel and pavedroads to be improved, reconsucted or upgaded in the two s will be done duringimplementation of the project. In addition, some allowance has been made in the costestimates for spot improvement of selected unpaved roads by contract using labor Intensiveand light equipment assisted methods in both states. For road projects to be included in theproject subsequently, it would be ageed dung negotiations that the minimum acceptableERR would be 12%.

9. Based on evaluations carried out thus far, the results show that the weighted overallERR for roads component in Oyo state Is 53% and In Osun 32%. The combined ERR for theroads component in both states is 43%. Benefits fDr the remaining components (technicalassistance, equipment and vehicles purchase and training), amounting to about 19% of totalproject costs, are high but non-quantifiable. Excluding benefits from these components buticluding their costs, the composite weighted average ERR for the project is 35%.

- 111 -

Annex 5-lage 3 of 11

TABLE 1

ROAD LINK CHARACI:ERISZ

_ -_ . N= -- *

iQk Prom o LAem& Pavement Fbwmm venaj AR RouA"ihnes(kin) TZE a/ W!idth (m) yI4Ik 1221 anR3

_ _ __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ (mn)_ _ _ _

844 IkIrs Ikoyl 4.6 SD 5.7 0.0 4488 8.67835 Iwo ldabout IbadanRoad 2.7 SD 6.7 0.0 3503 5.29867B Eebu Oesba iare 14.5 SD 6.1 0.8 758 9.06838 Awo PJjgbo 223 SD 6.7 1.2 661 13.00856 ifitu Ondo St. Brder 10.0 SD S.9 0.0 620 13.00832 Iwo Rdabout gigbo Road 2.6 AC 7.4 1.4 3053 15.21930 OChoubofly.pm Oshoobo Bypass 15.0 NEW 6.1 0.0 1335 9.63850 16 So. Oke"rew I (E) Abui St. 0.7 AC 72 0.0 9427 5.32864 bokua Ads 12.0 AC 6.0 0.0 600 13.00852A tbsha (SW) Ifewara 19.0 SD .- .. _ -

827 Iwo Nofdh Iwo Cnraol 0.9 AC 6.1 0.0 7S8 13.008478 Adfi lb Centra 19.3 EAR 11.1 0.0 100 13.00866 Ibobm (E) ibokun 1.5 EAR 6.6 0.0 2100 7.06857 Okuku Eukolo 8.1 SD 5.7 0.0 S8S 18.24867A tare Dbokun (E) 5.5 EAR 6.0 0.0 399 13.00825 Iwo Wet two North 2.7 AC S.0 0.0 1662 9.93847A Adi& ib (Central) 3.3 SD 4.8 0.0 15S2 17.24103 W8sbo EDd 3S.0 EAR 6.0 0.0 100 13.00860N Oyo Border ore 13.9 EAR 6.0 0.0 100 13.00833 Iwo (Awo Jot) Iwo Roundabout 4.0 SD 7.3 2.0 30SI 5.44843 Ikoy4 AkopM an 28.4 EAR S.8 0.0 703 9.31925 Ed. Awo/Osho Obo Jot. 1.7 AC 73 2.0 3009 5.05846 Asip Edunaboni 7.8 SD 6.7 1.2 661 13.41928 Esa-koD Ea-Odo 9.0 EAR 9.0 0.0 399 7.008S1 am(E) s O(NE) 1.9 AC 6.S 0.0 103 13.00104 Uebu-tbes Ed=no 8.3 SD 6.0 0.0 300 13.00855 teshai Or Border 50.8 EAR 6.0 0.0 290 15.00751 teblu/Akur Rd. tests 4.0 AC 9.0 0.0 282 13.00924 lUbu eb0 Mbokun (E) 16.S EAR 6.S 1.2 S02 1S.87929 bnd Ondo Eordxb 21.0 EAR 6.7 1.2 977 6.1S8585 own-Ne bnsmile 7.6 SD 7.0 1.4 5761 3.845575 O*hoobo Oyo S. Border 18.0 EAR SA 0.0 230 13.00102 Kia0 Ede 25.0 EAR 5.3 0.0 357 8.21855A Dbmxu OAhoogbo (5) 16.4 EAR 7.0 1.0 8756 3.0084m Iwo RR Ste Ddb# 19.3 EAR 4.2 0.0 100 13.00870 18bajo imesie 11.0 EAR 5.9 0.9 299 17.61871A Jgbao Orita he 4.1 EAR 4.8 0.0 100 13.008553 IbokUn OaoSgbo (E) 3.9 SD 7.4 1.5 282 9.09NWC Orke DdSUn 11.4 SD 7.0 1.5 244 5.00858 Doeln lyekU 6.2 SD 6.2 0.0 444 6.07

- 112 -

AmuRe S-1Pae4 of 11

819A bWa OtaoU) bEa& Can. (Dubp 1.2 AC 14.6 1.2 IOXO0 tO.QO

818 Ibadaa Ce ane (W 2.9 AC 73 1.2 13417 10.00

875 Bdn Akb 2.7 AC 6.0 0.0 604 13.00

820 badbn Ceanl bodaJn )a m O.S AC 7.3 1.2 lQQQO 13.00

IOOB Yoyl. Xid 4.7 SD 6.9 0.0 1241 13.QO

819B 1b 1komml) b Ia n (Du 3.6 AC 7b 3 1.2 10000 9.00

814 Oyo (C A(da 4).S SD S.5 0.0 20m 8.11821A lb_ &aJ. clods 30.0 EAR 7. 0.0 "a6 13.00

822 IbadEmaJ. St Boa DaCbolu 7.8 AC 1.0 0.0 1001 10.08

818 od Coeiya Junction 2.9 EAR 6.8 0.0 614 13.00

812 Olan c AOko 7A.0 NEW 5. 0.0 600 13.00

820 ibadan MCl 1d 12.0 AC 4.5 0.0 600 13.00

176 YaI$n AXl*ui 4.ot 33A S 6.0 0.0 698 13.00

817 b Ayuaaa b (Ce1)C 9.2 EAR 7. 0.0 1000 13.00874 byin ml Aik 61.0 EAR 6.0 0.0 297 13.00S8IA JBam n.a 2S3.0 am 7.5 0.0 479 13.00

107 Old ae RdB OM 1D Rtd 34.0 NEW 7.3 0.0 1913 15.00

523 Abe XMd 34.9 EAR 7.4 0.0 332 13.00811 1Okb EmlMnwl 124.3 AC .3 20. 697 5.00

17524B Ada OAa 74.5 EAR 7.1 0.0 77 15.00

821B Id Ayu. Obdas 17.0 EAR 6.S 0.0 300 13.00

87459 PPelSa ARd °8boho 16.0 EAR 6.0 0.0 294 13.00

801B l a It aqan 25.0 EAR 5.3 0.0 479 9.12

521 May Jdib 56.0 AC 6.0 0.0 200 15.00

810 AbaW Xlii 30.6 EAR 5.1 0.0 200 13.00

55t 0gu BoW F2061Saf Rd. 14A4 SD 6.5 0.0 294 13.00524D Ago-Are Abea 60.0 BAR 4.4 1.4 89 IS.00

725 dtd Ew a 43 AC 73 .5 734 1 5.00524A bAlk Aka 35.5 EAR 7.1 1.7 77 19.86816 Ataga AM 30.7 SD 5.5 0.0 264 14.79

860 Ob8omobo, (NT) Oyo/OC Boot4e 12.9 EAU 6.8 1.5 539 5.00

- 113 -

ha1f11

M CMST OE MAIEIENO CEReATIN2S

Ma-nt-nan' eOpeatons unit Cost Type Cost (USS$)

Payed Poads

Patig sq.m Fin. 8.20Econ. 8.90

Resealing sq.m Fin. 2.90Econ. 3.10

Asphalt Overlay (40mm) sq.m Fin. 5.50Econ. 5.10

Pavement Reconstruction (SD) sq.m Fin. 9.50Econ. 10.10

Basic Routine Maintenance km./yr. Fit. 232.00X______________________ _ BEcon. 246.00

Blading km Fin. 172.80Econ. 183.20

Spot Regravelling cu.m. Fin. 8.90Econ. 9.40

Surfce Regravelling cu.m. Fin. 4.50Eoon. 4.70

Basic Routine Maintenance km/yr. Fin. 232.00Econ. 246.00

- 114 -

Annexc 5-1Pag 6 ofS

TABLE 3

r rLQ CHARACSUBIM AMD UNr com

1 ~~ ~ ~~~Car VUt31t hda LnBlu 2A& LAo >3-Axle____k Thick 1Iuck

Vehle aracteiscsVeoic lTpo 1 4 S 5 8 9 10Fud Typo Petol Petol Dese Diesel Diescl Diesel DieselGross Vebicmi VA (tons) 1.10 1.70 2.70 12.70 18.30 26.00 38.00ESAL - - 0.02 1.50 I.SS 350 6.20Payload oe) _ 0.30 2.30 2.30 4.S0 6.00 13.00Drive HP 30 40 100 100 100 100 210Bob HP 17 30 160 160 250 250 S00Annual Hou Driven SOO I,S00 2,000 2,033 I,S00 1,900 2,500Annual km Driven 50,000 54,000 100,000 122,000 40,000 40,000 77,600Vehicb Svc Llfea ) 6 5 7 7 9 9 9No. of TlslVeh. 4 4 4 6 6 10 14

unit code (US$A. FWAncia CoSNow Vebiclo 11,939.00 18,855.00 28,500.00 179,620.00 65,000.00 103,339.00 140,3S5.00Thi 82.20 96.90 82.20 355.90 267.80 394.10 15S.00MBahuenance labot .23 .23 .23 .37 .23 .23 .37Crown Te .23 .23 1.33 .44 .44 .92Annual Ovwhead () - 5.00 S.00 12.00 8.00 10.00 12.00Annuad Inmtes (%) 17.00 17.00 17.00 17.00 17.00 17.00 17.00

Fudl & LubriantsB lt) Ptrol - .07 Diese FMue - .06 [Begne Oil - .92

B. cod$ _ Nenv Vehice 10,544.00 16,652.00 27,765.00 179,627.00 6S,000.00 103,339.00 140,35S.00Thres 74.70 88.10 74.70 323.S0 243.S0 358.30 468.20Mainenane Labor .25 .25 .25 .40 .25 .25 .40Crew Thnm . .25 1.41 .47 .47 .98Anuad Overhead (X) 10.00 1S.00 15.00 15.00 1S.00 15.00 15.00Annual lntere (%) 12.00 12.00 12.00 12.00 12.00 12.00 12.00

Fuel& &b u laOiter) PWeto - .10 D=bs l - .08 *oil _ .90

- 115 -

A=ze 5-1aEM 7 of 11

TBLE 4

M Al N ll ANC B ALTE IMAI VES

pAVED ROADS:

AL1T NULL -*-hut I vement which Is mantenance stndard NULI Inludiqg:

Pach 50% of Potholed am pls Routin Maintenane-Paved Read

ALTI NCMM *Minlmm aineane' which i maintenance tanrd MINI includigS:

Patching 100% of the Potoled ar to a maimm applicable r yss of 9 1I. Reconsuctwhe rughnessxceads 9.0Q tI. New surce: Sufc6 Trm t 15 am thikk. Iniialroughss 3.0 M. New graular bas 150 mm. Incemet In the Structural Number (SN) 0.8.RoutieM a inenance - Paved Road.

ALT2 NCD1 *Overay Design 1P which b maintenace andard DESI including:

Patching 100% of poaoled area. Oveday when roughnsu exceeds 4.0 11. Minimumapplicable interl 10 year, Oveday type AC. Stngth Coefficient 0.44. Overly theck 40-mm. Routine maiac e Paved Road.

ALT3 NCD2 'Oveay Desp 2n which Is minae sandard DES2 Inclding:

Sam as above wih Overay thickns of 60 mm.

ALT4 NCD3 'Ovely Desig 3' which ui maintence and DES3 including:

Sam as above with Overay thickns of 80 mm.

AL"S CODI mRscoamuction wit sulfac tretment* which is maintenance staard RECI including:

Reconstot when roughnes exceeds; 4W. Minimam applcabl interval 10 year. Newsuae: surfce teatment New surfin layer thickness 15 mm. Inil rouhm 3.0 MI.150imm. of grnuar bae. Inrment in the SN 0.8. Routie mainenance Paved Road.

ALI6 COD2 'Recoestructlom with Ashal Concree which a mnnance sandard REC2 Icluin:

Same assbov but e surfac: AC. New surfacing byer thicas 50 mm. Increment to theSN 1.7. Inld rugss 2.0 RI.

ALT7 NCM2 No Consucio Patch and Ses' which I maintemance sandard bMN2 inclun:

pach 100% of ptholed aea. Rast when total damage are excees 30%. Reconstuct w:.entoughs excds 9.0131. Minimum applicable interval 10 yeas. Surface type: suacetreatme. New surfciqg layer thickness 15 am. bdtial rouness 3.0 W3. 150 mm grnuarbase. Inmet of the SN 0.8.

ALT lRJI 'Upgae fiom sigle lan road to dual cnarniway' with construction oPon l nd inteancedsanord MNIN icu:.

Patching 100% of the pothold ares to maxiwmm appleable roughness of 9131. Reconsructwhe rounss exes 9.0 M3. New uface: suce treat t 15 mm. thick. Lilalroughns 3.01RtL New graua baseISO mm. Increment heSN 0.8. Routinemainten_nce - paved road.

- 116 -

Am= &1

IJNPAVED ROQI:

ALTOMMUP 'Miimum Malneo Uvpfvd Roadsw b w Alomeo tandud WhM IudW:

RoutMe OMeitnO UnpavedR*W&na ds~Iudes iunme. vege"tonwsouder, anudsemummodw.

ALTI UPMI 'Unpave Manmalmae 1' whIc is =ulMeumo aaadm UPMI lauhadhtg:

Gmadngwherougn ess ezceede1.031. ""s egaveUleg10%of iateda0Loe ROAMinmalatmaco far unpaved rash..

ALT7UInG UiyadMalntonawer vwic mIlc_ stadard uPI Inaud:

Graivg whe oughns ec s 10.01. MLGave esfocg wt nar maria eve ewoymat upo 100 tmm tk layer;,niti ru m 5.01RI. RouIe amanem fouV*wd.

ALT3 FMi 'Upade om _wed to paved road whh Is co. o opc 12 anud ulen stndard MINI

Coaattoto upgrad to paveroa th G Xyear. Psdig100% ofpouhoid arsmaimappicblroghnessn.0IL Reolat wenrugnss.aeDs .01to aacaeals.Nwlaye thck s 15.00 Mt ou s3.0 I ame Iqethkne SO0mJremr in th SN O.

- 117 -

mm -1bo9of 11

MMIBLU S

(US Cuts. Ecomomic cast)

,- --- - .. ___

ICiQ d MN LI 2Li d l ad axl Wesh1o

Good OR[ 25) 8.6 1l2 12.0 69.0 40.7 73.0 101.5 20.9Pair (II .5) 0.0 14.5 12.4 72.7 S8.9 84.0 116.2 23.7Poor (fl1 7.7) 1.8 17.8 12.8 77.1 57.3 95.0 131.7 26.9V.a Poor (IRI 11) 6.0 25.3 14.0 86.0 70.8 112.7 1S6.7 33.2

Pair to good 1.4 2.4 0.4 3.7 8.2 11.0 14.7 2.8Poor to good 3.2 5.7 0.8 8.1 16.6 22.0 30.2 6.0V.y poor to good 7.4 13.2 2.0 17.0 30.1 39.7 55.2 12.3

Exchng raft at the tim of data anldysis was US$1.0=NIO.0

- 118 -

lAW~A2 pate 10 of I11

TSX6

PRPOE PIRITY ROADs PROG)RAM DIN OYO SAE

_ _ _ _ _ = 'Su_ _- m *_!

Link Road Section Lengt Snrfaeo ADT Proposed Eoomic& EstimoatdNo. (M) Type A/ (1M) Woit Rat of Bas Cost

- - ________ ___________ ~~~~~~~ ~~~~Retumn (US$)

818 Dugbo-Oke Ado-Molst 2.9 AC 13,417 Overlay >150 0.73[Ibadan CentualXbadan (West)J

820 Dugbe-Old obasl-eiw 2.7 AC 10,000 Overy >IS0 0.68ibadan (CetAl)-hadn In.

(Bern)_

819B Adamangba-Dugbe O.S AC 10,000 Ovelay 119 0.30[badau (Mokala)4badan

(Dugbe)] _

8768 Agodi Gat- Molet 6.0 AC 698 Oveay 42 1.50[Ibidan (Gate)-lbadan (Mol.t)] _

814 Oyo (Cenal)-Ainmoin 4.7 SD 2,090 Rehab. 116 0.2S

822 lbadan Jn.-Dagbolub- Bdr. 41.5 SD 1,961 Reseal 102 2.40

874 Jsyin-aIye 50.0 sew S97 Consdt 70 10.00

1OOB Budo Ibruba-Kisbi 11.1 EAR 1,241 Pave 72 1.64

801B auiF-lbo-Ora 34.3 AC 479 wclaID 31 S.00

'!oyi If*-Ahoro Daa-Iding. 60.0 EAR 722 Pave 42 8.90

Undefined gI 17.0 EAR/SD _ Rehab. 2.40

High Volume Gavel Roads 4/ 1SO.0 EAR 100-200 Rehab. 28 3.00

Ltow Voune Unpaved Roads 100.0 EAR < 100 Spot iipr iS 0.S5

Mantenance by Contract _ 2.00

Totat 480.7 53 39.35

V AC - A~Im*CinuftUSD - 9Wao Dmuin -0 asodmloom_XBAR - ENOWGrad

EnR eatsd frm link 1005 in, patiom do ur asfi vobma

Sabjeg t ecmmlsj uaftdihd

gI 1. Mowing roads will be -arPk is.dawagwviii dun fr induiain him rgrn baudon- samnls juuflat

CkObW tgb *a.Babe Od 09 0iZ Z.. 4 dZ(45 b*@) _A9"-;.w*Q idI A

- 119 -

~Annex 5--Ve 11 of 11

TABLE 7

__ _ E_ _ PR=RAS PROGRAM IN STATE

Link Road Section Lengh Surfc ADT Poposed lconomic EstiatedNo. (Cm) Type I (1992) Wors Rate of Base Cost

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Retun (USS)

aE gcbu-Jesa-a Otan-11I 18.0 SD 758 Resuraci 8 1.11

930 Osogbo Bye Pass 8.0 New 3,500 Conaruct 72 3.49

864 Ada-Ibkiun 12.0 AC 1,662 Ovelay 53 0.72

8S52A esa (SU)liewa 19.0 SD 1,552 RewrEfae 52 o.9

867A lare-Pbolun 5.5 EAR 299 Pave 42 0.99

103 Ei8boAa-rAEde 3S.0 EAR S9 Pave 38 4.55

846 Asipa-Edunabon 7.8 SD 917 Rooa 30 0.30

928 Es-Oke-Esa,-Odo 9.0 EAR 399 Pave 28 1.33

923 Ibokhm-Orita Ido Minasi / | 10.0 EAR 479 Pave 34 1.38

.bisa-AsbeyeEwosin 152 EAR 1,225 Pave 26 1.90

870 lgbjo-lmeui-Ue Ondo St. Bdr. 18.0 EAR 250 Pave 19 2.25

102 Kuta-Ede 12.0 EAR 3C0 Pave 37 1.50

843 Apomo-Orle Owu-Arromi-Owu 32.0 EAR 585 Pa 32 4.00

Osogbo-lbkun lmesi 32.0 EAR 350 PAve 16 4.00

Undefined / 29.0 SDIAC R6bab. 3.00tHigh Volume Gravel Roads £1 150.0 EAR 100.200 Rehab. 28 3.00

Low Volme Unpaved R"ds 100.0 EAR < 100 Spot impr 15 0.55

Maitance by Contrat . . 2.00

Total 512.5 32 37.00

AC -A*a CaaSD - Sudacs Drew ping saWul now*"EAR a Erdimd

ERR ehuted fiom in M in piOe to to trafil ve

Mim foaoiaw rade wInbe cmulderda wla di.a her inobmian in 0* prqwm b anedcono.mic juaifna

AkWnalbsp (7k*WI&I _ s (7ko)3"d"Baw S1 Q m (21W

(IV) baim-EbhuIAM ( 8 ha(V) lb-FPAM (IS hk(VI 0y14b Oran. (14b S(.1 b8IEgbea (5kw(i DBuba4edoSL Bordr 5)b (O

120 -

A=6-

SECOND ~ ~ ~ ~ ~ ~ ~ U,o l1

DQoumet AvaiAbe In PXject Fil

1. M_R bus Ru FM _ Te meorch and DevelomntPmdton« (IRDF) & Feft Wisty of Worh ant Housfg :MWH), June 1992.

2. Roa Usw _ d Ag La _ Daf FindI Report Fdota Mdnity ofWd and Houdag, ald Loo Begro tal be., May IM9.

3. =4I*ZjM =o g A m n Abiaozad ~ I Ded 9et o£oefC aonr. hous n-Aw Report Svren Herte

(RD) inwt Oluwjdi Olgb1 (Coh), Ausut 1M9.

4. Mkw Eimult _aeok Al Ross, Ross Silcock Paruehp, JimaM92.

MAP SECTION

('I 1A1.)

~~~~~~~~~N I GJ R vRURKINA ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Chad

I S/\V IK;T ~~~~~SOKOTO Ymo IGAWAffff YOBE 9t

r o2 X fv _ Ir S v KANO V < g \ . | B.

J < gA < ~~~~~~~~~~~~~~~~~~~~~~~~DAMAT7UR

BE[NIN KAD {UNA \\ t1rf -

8< > ~~~~~~~~~~~BAUCHI t1i

/ X Nl(;ERt MINNN GFR ADAiMlAWA < .

h OYO C , toA se P.t

G Ie (OSUN3> 4 K Cl l, M^xuRa ~) JARABA \/y MULTI-STATE. J , t J -DO ED BENUE r ROADS PROJECT ff

AOCUUN _> NOXEo//Project States

i~~~~~~~~~~~~~CT ENG 1: S / OIFCrSITAES

a~~~~~~~~~~~~~~~~~~~ .nm .ofE T IRM WbtfdRIKR RMRS

Cesfi~~~~~~~~~~~~~~~~~~~~~n #c* . theM *. T tNTfRNATIONALBOCUNDARtf[S

m \ < 9 p Lf > < I~~~~~~~~~~~~~~~~~~~~~mlTff Rt , 0 0 1.1IUt

E~~~~~~~~~~~~~~~~~~~~~~~~~~~r Ws _

3a00' 3°30' NNIGER

NIGERIA jf 'GM oMULTI - STATE ROADS PROJECT 11

OYO STATE

PROJECr ROAD LINCS

9.30,- PRIMARY ROADS 9.30,

SECONDARY ROADS

, RAILROAD CAMERO

_ RIVERS 1r

0 STATE CAPITAL

STATE BOUNDARIES

INTERNATIONAL BOUNDARIES4<00 430'

KWA RA GlldO\ '/

z8*00* @ XS /' / \

0 20 4 \>0g RIIQMTSEESb\irr

Z ) Cf ~~~~~~~ ~~Ik or r A69.gcgo C

1 p .

L30' D.& sio botObS_ _t 0 ; < 300'

OGUN t f) W q t \ OSU

O } 20 30 40 MILES

0 20 40 fa01a~~-o rLOMuERS 8.00' t *~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~' 0'-

J~ ~ ~ ~ ~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~- Tlb_-_*30- '

NIGER aEAE 4305

L /d > >NIGERIA

MULTI - STATE ROADS PROJECT IIBENIN 89"' 41' S X V f OSUN STATE

04oe r4 0 . C K WAR A

-8-W~~ ~~~ |-hl.-hOmVlns

ovo~~~~~~~~~~~~~~~~~~y

70~~~~~~~~~1

70 O 10 25-l11o ST.AT NAS

Tf *./d-d /> } > icl

-710 \ N /aA 15 20 3OI( OMEflS

ToloeX4Xi(. 1.OND O

INENAINA OUNDRIE

-7&1.l-S 000.W 7o81o h0'000 . 1.000 0. 0 1 00101

0~ A ) \ . ) I 0 .0oAip yiza X o 0(0wn01lo~00o01 .do, lRoO U

X ' J \ o;>ot itH / WA] A AA~~~~~~~~~SECNDAR WAD

0~~~~~~~~~~~~~~~~~~41

t_--\\,bAu \ \ X HAIuli-Erilql[ flA n /~~~~SATEBOLNMIE

4-00,v 4'\ 0 I~ ~ ~ 1 -